Mark Kohler explains why choosing the wrong LLC structure exposes your personal information. In a member-managed LLC, every owner's name is public and they control the business directly. A manager-managed LLC keeps true owners off the record while a designated manager handles operations.
Chapters
This is one almost nobody thinks about, and it really can expose your personal life to the public more than you realize. Mistake number 4, you picked the wrong management structure or one got chosen for you. When you formed an LLC, you had to choose between member-managed or manager-managed. Again, intuitively, it may seem simple to say, well, I'm going to be the owner or member and obviously the manager, so I'm going to go with member-managed. It seems like the right choice. In plain English, however, a member-managed LLC means the members are going to be listed on the public record as the owner and manager so everybody can see who owns your LLC. Number 2, the member-managed means every owner now has a hand on the steering wheel or a say in how the business is run. But a manager-managed LLC means that one person is designated to run the operations and no one knows who the owners actually are.