How is a limited liability company managed?
With an LLC in Arizona the members (owners) of the company vote and manage the company, unless the Articles of Organization designate the company is manager managed. In that case, the company is managed by the managers designated in the Articles, and the management duties could be further refined by the terms of the Limited Liability Company Operating Agreement. Frequently, the members of the company will each have equal rights to management, equal rights to profit sharing, and equal responsibility for contributing start up capital and funding necessary for continuance of the entity. However, it is quite possible to structure an Operating Agreement where the members have different proportional rights to management, allocation of profits and capital contribution responsibilities. For example, theoretically, you could have an LLC where one member will have 90 percent management rights, with an obligation for only 5 percent of start up capital contributions. Similarly, you could have a si