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The only way a member of an LLC may be removed is by submitting a written notice of withdrawal unless the articles of organization or the operating agreement for the LLC in question details a procedure for members to vote out others.
There could be one manager or multiple, and the manager could be a member (but need not be). If the manager isn't a member, they are called a professional manager. The managers act as a board of directors would for a corporation. Manager management is appropriate when an LLC has investors.
Only a manager-managed LLC can have a board, so you would have to consider this at formation. A board of directors is a handy way to align members with appropriate duties and enforce communication.
The members appoint one or more managerswho may or may not also be membersto manage the LLC. Only the managers may bind the LLC to contracts and participate in the day-to-day operation of the business.
Members can appoint managers at any time. Whether it's manager or member managed, the selection can be changed by amending the articles of organization. Changes to articles usually need a vote to change them, and state law can require unanimous decision.
A manager will be elected by a majority of LLC members and can also be removed, or fired, through the same majority of members. This firing can occur without notice or cause.
Members can change the management structure of its LLC according to the rules in the operating agreement. To complete the process, the members of an LLC must vote and approve the changes. After the voting process, an amendment to the articles of organization is filed with the secretary of state's office.
A managing member position within an LLC will usually have the authority to: Make business decisions regarding daily company operations, like firing or hiring employees or independent contractors. Enter into binding agreements on behalf of the LLC, such as contractor agreements or property sales. Make legal decisions.
A professional manager will always be considered an employee. Whether you hire a professional manager or allow a member to handle management duties, you should be sure to provide them with a decent salary and withhold payroll taxes.
A manager may be removed at any time by the consent of a majority of the members without cause, subject to the rights, if any, of the manager under any service contract with the limited liability company.