Just because you own it doesn’t mean that you need to know what to do with it. Limited liability companies (LLCs) have a manager role — a person who handles the day-to-day operations of the company. All LLCs are required to have at least one manager. They can be the owners themselves or other outside persons or businesses.
Two types of LLCs exist:
A member-managed LLC is managed jointly by all of its members.
A manager-managed LLC is managed by one or more — but not all — of the members or by separate (non-owner) managers altogether.
If you are forming an LLC with only a few owners (members), and each owner is going to have a say in managing the company, then you may want to choose member-management. However, if you decide to take on a silent partner and that person is not managing the business day-to-day, then your LLC needs to be manager-managed. All members, except for the silent partner, are listed as manager.
Unless all the members are managing the company’s day-to-day business, your LLC is considered manager-managed.