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A manager managed LLC treats you as a glorified investor but does not grant you any rights. The better option may be to create a 49/51 agreement with you retaining the right to make managerial decisions within a certain scope, such as on financial investments or payments above a certain threshold. That will create a a means by which you retain control and it will also create options and an oversight for his managerial options. In essence he will conduct operations while you are a glorified Board that could overrule him in certain instances.
Hope that helps.
Thanks. Will this type of arrangement classified as Manager Managed ? If not what is the classification? And whats the best way to draft such an agreement ?
There is no specific classification under US law--an LLC is simply defined differently within the articles of operation. If you do not quite trust the partner, then retain counsel to draft it for you. usually you can draft it yourself with templates you can find online, but as you and your potential partner do not really see eye to eye, a mutual consult with an attorney may be a good investment in your particular situation. Otherwise you may be looking at an expensive dissolution and break-up down the line if the expectations do not align between you and your partner.
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