{"ok":true,"canonical_url":"https://dealroom.so/glossary/managing-member","api_url":"https://dealroom.so/api/public/glossary/managing-member","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"managing-member","term":"Managing member","group":"People and paperwork","definition":"A managing member is an owner in a Limited Liability Company (LLC) with authority to run the business. As a buyer, you need to know who has this authority to ensure proper legal transfer of the business.","what_it_means":"For an LLC being acquired, the managing member(s) are key signatories for the sale. Confirm their authority via the LLC's operating agreement and state records. This ensures the deal is approved and executed by the correct parties.","url":"https://dealroom.so/glossary/managing-member","official_sources":[],"related":[{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"director","term":"Director","url":"https://dealroom.so/glossary/director"},{"slug":"operating-agreement","term":"Operating Agreement","url":"https://dealroom.so/glossary/operating-agreement"}],"related_questions":[{"question":"Do I need to be actively managing the business to get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-be-actively-managing-the-business-to-get-an-sba-7-a-loan"},{"question":"Is member or board consent needed for an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/is-member-or-board-consent-needed-for-an-sba-partner-buyout"},{"question":"What documentation is required to verify equity injection from a gift from a non-family member?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-from-a-gift-from-a-non-family-me"},{"question":"Can money gifted from a family member be used for my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-loans/basics/can-money-gifted-from-a-family-member-be-used-for-my-sba-7-a-equity-injection"},{"question":"Can an SBA 7(a) loan be used to purchase a business from a family member?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-from-a-family-member"},{"question":"How should a lender verify funds gifted from a non-immediate family member for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-verify-funds-gifted-from-a-non-immediate-family-member-for-equity-inje"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Managing member","url":"https://dealroom.so/glossary/managing-member","source_type":"DealRoom Data"}}