Wyoming LLC Management
Another benefit of a Wyoming LLC is that the management structure is flexible. You can structure it according to the role that each owner will play in the business. Member Managed and Manager Managed are the different ways to structure the owners of an LLC. Wyoming LLCs can either be governed collectively, by all of its members, or by one or more managers who are voted in by the members and who carry out the day to day functions and business of the LLC.
Member Managed LLC
A member managed LLC is operated by all of its members, or by a committee of members selected by the other members. Remember, in an LLC, shareholders (or owners) are referred to as members.
The member managed LLC is the most democratic of the structures and is a great vehicle in situations where you have only a few members who will all be participating equally in the daily operations of your business.
If your entity will be used as a business vehicle by unrelated parties, then a member managed LLC may be a good option. You will each have an equal share in how the business is operated, yet you will each remain insulated from personal liability with respect to your involvement in the business. Keep in mind, however, that too many hands in the pot can make it difficult to run day to day operations and thus a manager managed LLC may be beneficial depending on the type of activity the LLC is involved in as well as the personalities involved.
Manager Managed LLC
A manager managed LLC is run by a manager, who is initially appointed by the members. The manager may be a person, more than one person, or a corporate entity. A manager does not have to be a member and hold ownership interests in the LLC, although it certainly can do that.
A manager usually has control over all of the day to day operations of the LLC, and the members are involved peripherally, on actions such as voting to acquire or dispose of major assets, or possibly voting to remove a manager from office.
If your entity will be owned by your family and used as a vehicle to amass and manage family wealth, then either a manager managed LLC or an LP is a safe bet. Both of these methods will allow you to maintain control over the daily management of your assets, and to move ownership gradually over to your children, without potentially losing control.