I have had a series of questions from clients about the LLC statute, and in particular, the difference between a managing member and a manager in response to our recent post about LLC changes.
Limited liability companies may be member-managed or manager-managed. Member-managed is the simplest structure, and it means that every member has authority to act on behalf of the business. These entities are identified on sunbiz.org as MGRM.
If all of the members of a limited liability company will not have authority to manage or act on behalf of the business entity, then the limited liability company will be “manager-managed.” These entities are identified on sunbiz.org as MGR.
Please contact the firm as well as a certified public accountant, as necessary, to determine the correct business structure for your needs in light of recent changes to the Florida Business Landscape.
See the statute: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0605/0605.html