In terms of authority, what do managing members of an LLC in Georgia rely on?

In Georgia, managing members of a Limited Liability Company (LLC) primarily rely on the Operating Agreement and state law for their authority and governance. The Operating Agreement serves as a critical internal document that outlines the management structure, operating procedures, rights, and responsibilities of members. This document can specify how decisions are to be made, how profits and losses will be allocated, and how the LLC will operate on a day-to-day basis.

State law also plays an essential role, as it provides the legal framework within which the LLC operates. Georgia's Limited Liability Company Act provides default rules for LLCs that have not explicitly defined their own operating rules in an Operating Agreement. Therefore, when managing members make decisions or take actions on behalf of the LLC, they are guided by the provisions of their Operating Agreement, supplemented by state statutes as needed.

In contrast, relying on federal law regulations is generally limited to specific areas, such as taxation or federal business regulations, which do not govern day-to-day operational authority. Industry standards might guide best practices but do not have the binding nature of legal documents or regulations. Shareholder requests would not typically apply to an LLC, as this structure does not involve shareholders in the same way as a corporation. Thus, both the Operating