Episode 15: Comparing the LLC Manager & the Corporate Director

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Premiere Date: March 22, 2023
With  Susan Kearney

It is difficult to accurately compare the number of limited liability companies and corporations formed in the United States each year, as the data on these entities is not consistently reported. However, it is likely that there are more LLCs formed each year.

Therefore, it is worth asking, is the Bare Bones Board Basics webinar series applicable to managers of LLCs? The answer is yes, and no.

Corporate boards, like the corporations they serve, are creatures of statute.

LLCs, on the other hand, are creatures of contract. And, under most states’ laws, the fiduciary duties traditionally imposed on the directors of a corporation can be eliminated or restricted in the context of an LLC by doing so in its operating agreement (which is just the contract between the members of the LLC and its managers). That’s a major difference between corporate boards and LLC managers- – – But if an operating agreement does not eliminate or restrict fiduciary duties, most states’ courts borrow heavily from the fiduciary duties that exist in corporate law and impose them on an LLC’s manager.

An LLC might choose not to have a manager at all, and instead be member-managed rather than manager-managed. And to made matters more confusing, an LLC may choose to have a board of directors- – – though an LLC’s board of directors is not necessarily the equivalent of a board of directors of a corporation.

This webinar will arm attendees with a basic understanding of the fundamental differences and similarities between the way corporations and LLCs are governed.

As with each episode in this series, the information presented in this webinar will be equally helpful and accessible to company owners/executives as to board members and prospective board members.

Join us as an owner, officer, or board member of a corporation or a member, manager, or officer of an LLC!

 

Add yourself to our “Interested List” (your information will never be shared with any third party) for more information.