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What is the difference between a Member-Managed and a Manager-Managed LLC?

When filing an LLC, you will first need to determine the management structure. This should be pretty clear out of the gate. If it’s not, it likely means you should be a Member-Managed Tribe.

Member-Managed means that the group is all working together. You still will nominate certain roles like President who will be able to make decisions on behalf of the group, but largely the group will be coming together to determine the next moves. 

Some tribes will want to be Manager-Managed and designate a clear-cut Manager out of the gate. In this case, all members know going in that certain decisions and control will go to this individual or individuals. The member is still active as members of the board, but the day-to-day -- and even investment decisions -- will be by a manager.