Updated November 6, 2020:

An LLC managing partner has the authority to act on behalf of the company and handles management duties. An LLC can have as many managing partners as it wants, and they don't have to be members either. Owners in an LLC are referred to as members. They are not required to maintain an active role in day-to-day operations. Owners have the option to run the business themselves as managing partners. 

The LLC managing partner will have duties and responsibilities as defined in the business's Articles of Organization. He or she is responsible for a variety of day-to-day activities like hiring, firing, bringing on new vendors, unions, etc. To avoid conflicts down the line, consider adding all responsibilities of a managing partner to the LLC's organizational documents.

Limited Liability Companies, or LLCs, are great for people who want to start a business but limit their liability of any company debt. They are attractive to business owners because they offer flexibility in taxation, management, and ownership. They operate as a separate entity from the business's owners. This means there is limited liability for owners, while tax laws offer the ability to be taxed as a partnership. 

Forming an LLC 

To form an LLC, you are required to file the Articles of Organization with the Secretary of State office. Each state requires that all limited liability companies include the LLC name in the Articles of Organization. The company name needs to include limited liability, limited liability company, LLC, or L.L.C. 

Articles of Organization need to include:     

  • Business purpose     
  • Principal address      
  • Name and address of the LLC's registered agent    
  • Members' capital contributions     
  • Rules regarding adding additional members     
  • Names and address of managers of the LLC

Manager Versus Member-Managed LLCs

If you have an LLC, you can decide to have it be a member-managed business or manager-managed. When an LLC is member-managed, it means all members have a voice in the day-to-day operations. This is ideal for small groups of members who have time to devote to the company. 

If you have members who are passive investors and choose not to be involved in operations, you may opt for a manager-managed LLC. This is where you choose one or more managing partners who are authorized to act on the business's behalf. 

Reasons to Choose Manager-Managed LLCs

There are some situations where manager-managed LLCs are a better choice. Some reasons to choose a manager-managed LLC include: 

  • When you have members who lack the management experience and/or want to remain passive investors.
  • There is a large number of owners, as sharing management duties amongst a large group of owners can be difficult at best. 

No matter whether you own the entire LLC or just a small part, you are known as a member.

Depending on the state, you may have been required to disclose whether your LLC will be member-managed or manager-managed. 

Choosing a Name for LLC Owners and Officers

Outside of the LLC itself, the word member doesn't carry much weight. In some people's eyes, it could be an employee or a manager. If you're running an LLC, you'll learn there are not any detailed rules on what to call your position. LLCs aren't required to call someone CEO or president, which is different than standard corporations. 

When deciding on a job title for LLC owners, keep these two things in mind: 

  • The name should tell outsiders who you are and that you have the authority to act on the LLC's behalf. 
  • Names should not be misleading. Acceptable options include owner, managing member, CEO or president, or Managing Director or Principal. 

There are some names that can cause problems. These include:    

  • Managing Partner, or any other name involving the word "partner." 
  • Proprietor — this is a popular option for single owner LLCs but could be confused with a sole proprietorship. 
  • Titles that are made up, as they don't tell outsiders what you actually do. 
  • Humorous titles like Fearless Leader. They may seem fun but aren't likely perceived well when negotiating a multi-million dollar contract. 

What is the LLC head called? It's really open to interpretation and what works best for your personal situation and company. 

If you have questions regarding the process of appointing an LLC managing partner, you can post your legal need on UpCounsel's marketplace. UpCounsel only accepts the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.