In a corporation or LLC, the shareholders/members own the company and elect the board. The board sets the entity's general strategy while the officers run the day-to-day operations. The corporate shield prevents people from suing the owners for the acts of the corporation/LLC.

Company Structures and the Risks of a Member-Managed LLC

When you register a Texas LLC with the Secretary of State, Article 3 on the Certificate of Formation asks whether it will be governed by either A. managers or B. members. In almost every instance you will want to check box A for managers because a manager-managed LLC better protects the members if and when…