The formation of a Nevada managed LLC generates several natural questions from clients.  At Rise Legal – Steve Dixon Law, many of our business clients ask us how a Nevada LLC should be managed.  The answer is not as complex as it seems.  The filing and creation of a Nevada managed LLC can now be done online through SilverFlume.  This can be found on the website for the Nevada Secretary of State

In Nevada, owners of a Nevada LLC are known as “members.”  Members have a lot of discretion to legally run the business.  However, that discretion can be limited by terms found in an operating agreement.  If two or more people are members of a Nevada LLC, it is a good idea to have an operating agreement.  An operating agreement will outline the terms of ownership of the company.  In addition, the operating agreement will provide conditions for the members to withdraw from the company, be bought out, etc. 

If the LLC is member-managed, each member has input on the day to day operations of the company.  Again, this can be  limited if an operating agreement is in existence.  However, it can also be limited based on the percentage interest each member has in the company.  If a company will only have a limited number of members who are readily accessible to make daily business decisions then a member managed LLC may be right for your business. 

On the other hand, members sometimes want to take a more passive role in the day to day operations of the company.  In this case, a manager can be appointed to make those day to day decisions.  Again, there are some restraints as outlined in the operating agreement.  A manager can be a member of the company, but does not have to be.  In either case, members and managers have a fiduciary duty to the company to act in its best interests.

Another benefit of a manager run LLC is that only his or her name would be recorded and appear on the Secretary of State’s website.  This can provide anonymity for the member(s) of the LLC.  In any event, a Nevada managed LLC needs an operating agreement.  If your business needs any entity formation assistance, including creating of an LLC or an operating agreement, please call Rise Legal – Steve Dixon Law at (702) 329-4911 for assistance.

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