If you’re considering forming a Limited Liability Company (LLC) or are already managing one, you may wonder: Do LLCs have a board of directors like corporations?
The short answer: No, LLCs do not have a board of directors by default. Instead, LLCs are typically managed either by their members (owners) or by appointed managers, depending on how the company is structured.
In this article, we’ll explain:
- Why LLCs don’t require a board of directors
- How LLCs are typically managed
- Differences between LLCs and corporations in governance
- When an LLC might create an advisory board or similar structure
- Best practices for LLC management
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Do LLCs Have a Board of Directors?
No — unlike corporations, LLCs are not legally required to have a board of directors. This is because LLCs are governed under a different structure than corporations.
Corporations are required to:
- Appoint a board of directors
- Hold annual board meetings
- Maintain corporate bylaws and meeting minutes
In contrast, LLCs enjoy more flexibility and simplicity in management.
Instead of a board of directors, an LLC is managed by:
- Its members (owner-managed or member-managed), or
- Appointed managers (manager-managed)
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Member-Managed vs. Manager-Managed LLCs
- Member-Managed LLC
- All members (owners) are involved in day-to-day operations
- Most common for small businesses and single-member LLCs
- No board structure needed — decisions are made collectively or individually (as outlined in the operating agreement)
- Manager-Managed LLC
- Members appoint one or more managers to run the business
- Managers may be members or external professionals
- Suitable for passive investors or complex ownership setups
- Still, no formal board of directors is required
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Do LLCs Have Officers Like a Corporation?
No, not by default. However, an LLC can voluntarily appoint officers (e.g., CEO, CFO, COO) if the members want a more corporate-like structure. These roles can be outlined in the LLC’s operating agreement.
This is common in larger LLCs or those that plan to raise capital, partner with investors, or eventually convert to a corporation.
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Can an LLC Create a Board of Advisors?
Yes. While not required, some LLCs — especially high-growth startups or professional firms — may establish a board of advisors to:
- Offer strategic guidance
- Lend credibility
- Help with fundraising, marketing, or partnerships
Unlike a corporate board of directors, a board of advisors has no legal authority or fiduciary duties. Their role is strictly consultative unless otherwise agreed.
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Legal Requirements: LLCs vs. Corporations
| Feature | LLC | Corporation |
|---|---|---|
| Board of Directors | Not required | Required by law |
| Officers | Optional | Required (President, Secretary, etc.) |
| Management Structure | Flexible (members or managers) | Formal, hierarchical |
| Annual Meetings | Not required in most states | Required |
| Bylaws | Not applicable (uses Operating Agreement) | Required |
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Best Practices for Managing an LLC Without a Board
- Draft a comprehensive operating agreement
- Clearly define decision-making authority
- Document major decisions for transparency
- Appoint managers or officers if helpful for growth
- Consider forming an advisory board for expertise
While not required, professionalizing your LLC’s internal governance can help with credibility, especially when working with banks, investors, or strategic partners.
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Final Thoughts
No, LLCs do not have a board of directors. One of the biggest advantages of forming an LLC is the flexibility in governance and structure.
Instead of a board, LLCs are managed by their owners or appointed managers — and can customize roles through their operating agreement.
Whether you’re a solo entrepreneur or part of a multi-member team, understanding your LLC’s structure is key to success.
Need help forming your LLC or setting up a compliant operating agreement? FormLLC helps founders across the U.S. with LLC formation, EIN registration, BOI compliance, registered agent services, and more.
