Ambr Meaning LLC is an important term business owners need to know. In an LLC, there are multiple terms for persons that have the authority to file and execute records with the office. The three people in an LLC have this authorization.

  • An Authorized Representative or AR
  • An Authorized Person or AP
  • An Authorized Member or AMBR

In the event that all members of an LLC company don't have the authority to act on behalf of the company or manage it, then the limited liability company will be referred to as manager-managed. In this type of LLC, them members will have the power to elect the individuals that will be in charge of running the company and are referred to as a manager. If the LLC is manager-managed, then the manager cannot be a member of the company. Managers can be an individual or another LLC or corporation if the state allows it.

LLC Management

An LLC management has the ability to be either member-managed or manager-managed. The simplest structure to follow is a member-managed. In this type of structure, every member will have the authority to act on behalf of the business. Since the LLC is a newer type of business entity in the United States, the management structure can be similar to other corporations though different in some ways.

There are a variety of structures that an LLC can take. They can be either single-member or multiple-member. When an LLC is member-managed , all members can act on behalf of the business in any capacity including signing contracts and loan agreements though they will require majority approval by the members before being signed. If no manager is named, most states will default the LLC to member-managed. When manager-managed is chosen, it must be included as a designation in the Operating Agreement.

Passive Members of an LLC

An LLC can also have passive members. A passive member can be a designated member or an investor though they will not be allowed to participate in the day-to-day decision making of the company. Since they are not involved in the decision making responsibility, they will incur less liability. When there are both passive and active members, either an active member will need to act as a manager, or a manager will need to be named to run the daily business operations.

LLC Size

The size of the LLC may play an important role in the selected management structure. If the LLC is large, typically there will be one or more managers chosen to run daily operations, as it makes be difficult for all members to come together to make the decisions.

A large LLC can benefit best from a professional manager as they are more apt to deal with more complex business structures. It is important to remember that when a manager is chosen they will have the ability to make decisions including financial ones, so if members wish to maintain this power they should choose a member-managed structure.

Members of an LLC are owners and not employees or the company. In the event a member is chosen to perform management duties for an LLC, the member will then take on an employee role, and their management salary will be considered separate from their owner share and status.

All LLCs should make the determination on the type of management structure that they will choose before they commence operations by outlining it in their company operating agreement.

Starting an LLC in Florida

A state that is a great place to form an LLC is in the state of Florida. In Florida, your assets can be protected in a multi-member LLC. This will give you much greater protection than a single-member LLC can. In a single-member LLC, the member is an individual behind a company name. This can make you more vulnerable to a creditor.

In your operating agreement, you will need to list each manager and representative authorized to manage the company along with their addresses in your operating agreement. This information is necessary if you wish to:

  • Open a business bank account
  • Obtain a workers' compensation exemption

Though Florida is great for protecting the assets of an LLC, it does not provide for much privacy and requires that all members of an LLC are made public.

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