Understanding the Difference Between Member-Managed and Manager-Managed Companies

Member-managed and manager-managed companies are two distinct types of business structures. In a member-managed company, the members of the company have the authority to make decisions and manage the business. In a manager-managed company, the managers have the authority to make decisions and manage the business. The main difference between the two is the level of control and decision-making authority held by the members or managers. In a member-managed company, the members have a higher level of control and decision-making authority, while in a manager-managed company, the managers have a higher level of control and decision-making authority. This article will explore the differences between member-managed and manager-managed companies, including the advantages and disadvantages of each type of company structure.