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Random Thought
Think up a good name for your company. Joe Blow LLC is not
distinctive and doesn't stand out. Use a word that will acquire
secondary meaning. Think Xerox, this wasn't even a word but is now
a household name.
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MANAGER MANAGED V.
MEMBER MANAGED
This is a somewhat confusing topic. Practically though, in
most cases it doesn't matter which you choose. If you are a
single member LLC (smllc), my suggestion is to elect to be manager
managed. Then in your operating agreement you can appoint a
substitute manager if you get sick or are otherwise incapacitated.
This can be a wife or grown child you trust. So lets say your
business is booming and you decide to sail around the world for a
year. You can appoint your son the manager so he can sign
contracts and carry on business while the wind blows in your hair.
If you are a multi-member LLC and everyone is active in the
business, i.e. sign contracts etc., then it doesn't matter what you
choose. Probably pick manager managed so you can always
appoint someone a manager who is not a member. If you have
partners who are investors but who are not active in the business,
definitely elect to be manager managed so those people cannot sign
contracts, etc.
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