A limited liability company (LLC) member who does not take part in business management is known as a non-managing member. In other words, they lack the power to decide on management and have no input into how the business is run on a daily basis. Typically, passive investors who provide money to the LLC in exchange for a cut of the earnings are considered non-managing members.
Limited liability protection affords non-managing members the immunity from personal culpability for any debts or obligations incurred by the LLC. This protection is comparable to that of corporate stockholders. Non-managing members, however, could nonetheless be responsible for their own business-related conduct.
Non-managing members do not participate in contract negotiations, personnel recruiting, or other business decisions. Additionally, they frequently do not have access to private data like the company’s financial records. Instead, they trust the management team to make wise choices that will benefit the business and its shareholders.
Large law firms with a focus on high-profile cases like mergers and acquisitions, intellectual property, and securities law often employ the highest-paid attorneys. According to Forbes, Sandra Goldstein, a partner at Kirkland & Ellis, earned an estimated $11 million in 2020, making her the highest-paid lawyer in the country.
The CEO of a law firm works closely with partners and other executives to ensure the firm is meeting its goals and offering clients high-quality legal services. They are in charge of overseeing the day-to-day operations of the firm, including managing finances, setting strategic goals, and establishing policies and procedures. In addition to hiring and training new attorneys, the CEO may also be active in marketing and business growth. In bigger businesses, the CEO could collaborate with a management committee to make crucial choices and determine the company’s course.