Bart, Sam, and Greg create Big Barns Sales LLC, a company that builds pre-constructed barns. They file the certificate of organization with the secretary of state and create an operating agreement for the LLC. The operating agreement, however, does not address the method by which the LLC will be managed. Because management of the LLC is not addressed in the operating agreement, it is assumed the LLC will be:
manager-managed; the members will designate a person or persons to manage the LLC, and none of the managers can be members.
manager-managed, and the members will designate a person or persons to manage the LLC, which may include nonmembers.
member-managed; all members will vote on decisions of the LLC, and the majority vote controls.
member-managed, and the member with the largest capital investment will control the decisions of the LLC.