What is a manager-managed LLC?

A manager-managed LLC delegates operational control to one or more designated managers, who may or may not be LLC members. Members are typically passive investors.

Can a non-member be a manager of an LLC?

Yes. LLCs can designate outside professionals (such as a hired CEO or property manager) as managers without giving them any ownership interest.

What decisions still require member approval?

Typically: admitting new members, major asset sales, dissolution, and amendments to the operating agreement. Day-to-day business decisions are delegated to managers.

Is a manager-managed LLC right for real estate investing?

Very commonly yes. Real estate LLCs often use a manager-managed structure where a property manager handles operations and passive investors simply receive distributions.

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Manager-Managed LLC Operating Agreement

In a manager-managed LLC, designated managers (who may or may not be members) handle day-to-day operations. Members retain ownership rights but are not involved in daily management.

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When to Use a Manager-Managed

Use when some members are passive investors who do not want to be involved in operations, or when you want professional managers running the business.

What Makes This Type Different

How a Manager-Managed differs from the standard LLC Operating Agreement.

Separates management (managers) from ownership (members)
Managers have authority to bind the LLC in contracts
Members vote only on major decisions (asset sales, dissolution)
Suitable for passive investor structures and outside management

Other LLC Operating Agreement Types

Not quite the right fit? Explore other variants.

Single-Member LLC

LLC with one owner

Multi-Member LLC

LLC with multiple owners/members

Standard LLC Operating Agreement

View all variants and the standard template

Frequently Asked Questions

Common questions about the Manager-Managed.

You Might Also Need

Documents commonly used alongside a Manager-Managed.

LLC Operating Agreement

Define ownership structure and operating procedures for your LLC.

Partnership Agreement

Establish clear terms for business partnerships and profit sharing.

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Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.