An owner of an LLC (Limited Liability Company) is officially called a member. An LLC can be owned by one or more members.
The Official Term: Member
The term "member" is the legally recognized designation for an owner of an LLC. Unlike corporations, which have "shareholders," or partnerships, which have "partners," the unique structure of an LLC uses the term "member" to denote ownership. This term is consistently used in legal documents, such as the LLC's operating agreement and state filings.
- Single-Member LLCs: An LLC owned by one person is called a single-member LLC, and that individual is the sole member.
- Multi-Member LLCs: An LLC owned by multiple individuals or entities is a multi-member LLC, and each owner is a member.
Beyond "Member": Common Titles for LLC Owners
While "member" is the official and legal term, LLC members often choose to use other titles in their day-to-day business operations. These preferred titles can offer a clearer understanding of their specific role within the company, align with industry standards, or simply reflect their personal preference. The choice of title often depends on the individual's involvement in operating the business.
Why Other Titles are Used
Members frequently adopt more traditional business titles to:
- Convey Authority: Titles like CEO or President immediately communicate a leadership role.
- Professional Image: Using common corporate titles can make an LLC appear more established to clients, partners, and investors.
- Define Responsibilities: A title such as "Managing Member" clearly indicates an active role in the company's daily operations, as opposed to a passive investor.
- Industry Custom: Certain industries might have preferred titles that help integrate the LLC member into existing professional networks.
Examples of Common Titles
Here's a table illustrating various titles LLC members might use, depending on their role and preferences:
| Common Title | Description |
|---|---|
| Managing Member | An LLC member who is actively involved in the day-to-day operations and management of the business. |
| Owner / Principal | General terms that clearly indicate ownership and often imply a leading role in the business. |
| CEO (Chief Executive Officer) | Used if the member is the highest-ranking executive, responsible for overall company management. |
| President | Often used by the primary leader or head of a division, or as an alternative to CEO. |
| Director | May be used to signify a position on the company's board (if applicable) or a senior management role. |
| Founder | Emphasizes the individual's role in establishing the company. |
| Partner | Although legally distinct from a partnership, some multi-member LLCs informally use "Partner" to denote co-ownership. |
It's important to remember that while these titles are used externally, the official legal designation remains "member." The LLC's operating agreement should clearly outline the roles, responsibilities, and decision-making authority of each member, regardless of their chosen public-facing title.
For more information on LLCs and their structure, you can consult resources such as CorpNet's guide on What is the Owner of an LLC Called?
