Example 1. Three persons each have membership interests (ownership to profits) and all three will have equal management rights, then the company would be a member-managed LLC.

Example 2. Three persons each have membership interests (ownership to profits) and all three will have management rights, but their management rights are not equal, then the company would still be a member-managed LLC.

Example 3. Three persons each have membership interests (ownership to profits) All three members have management rights. Another person with no direct ownership of profits will also have management rights. The company would be a manager-managed LLC.

Example 4. Three persons each have membership interests (ownership to profits) None of the three members have management rights – they are “silent investors”. Another, fourth person will operate the company. This fourth person will not have any interest in the profits of the company. Instead, they are paid a salary. This company would be a manager-managed LLC.