👔Management
Member-managed LLC vs. Manager-managed LLC
There are types of LLCs either a member-managed LLC or a manager-managed LLC. In a member-managed LLC, all the members or owners share in the responsibilities of managing the day-to-day operations also known as "active investment". In a manager-managed LLC, the members elect a manager or managers to run the day-to-day operations. A manager may be a member or not. In a manager-managed LLC, the members who are not managers are considered "passive investors".
Why is this important to foreign entrepreneurs? Because as a foreign entrepreneur, if you are inside the U.S., you cannot manage the daily operations without work authorization or a U.S. visa/status. In this case, you would elect to own a manager-managed LLC and hire a manager. In addition, manager-managed LLCs are common when a foreign parent company will form a U.S. subsidiary.
If you will be residing and performing all work for your company outside the U.S., then you can choose a member-managed LLC and you would not need a U.S. visa to run your operations.
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