Thursday, September 3, 2009

Who can be an LLC manager?

Question: Can the managing member of an LLC be another unrelated LLC? Michael, California.
Answer: The nice thing about LLCs is their flexibility. The answer to your question is found in the definitions section of the California Limited Liability Company Act (Section 17001 of the California Corporations Code). Section 17001(w) defined "Manager" as "a person elected by the members of a limited liability company to manage the limited liability company", emphasis added. The legal definition of "person" is not the same as the everyday usage. Section 17001(ae) defines "Person" as "an individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign", emphasis added. Thus, under my reading of the above statutes, an LLC (whether foreign or domestic) may be the manager of a second LLC formed in California.

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