Legal Question in Business Law in Arizona

Managing member of LLC

Is a managing member of a Limited Liability Company required to own a percentage interest in the Company as opposed to receiving a small annual fee for serving as a managing member?

Thank you.


Asked on 12/02/04, 4:06 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Managing member of LLC

By definition, if one is a 'member' of an LLC, then s/he has an economic interest, however small, in the company. One cannot be a 'member' and not have an interest. On the other hand, a manager need not be a member, and need not have an interest, if the operating agreement permits such, and most do. Nothing legally requires the manager to be compensated whether s/he is or is not a 'member.'

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Answered on 12/02/04, 5:37 pm


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