What Is the Owner of an LLC Called? What Is the Owner of an LLC Called?

The official title of limited liability company owners can be altered to reflect the specific role that characterizes the position.

Main Titles

The owner of an LLC is called a member. LLCs can have one or more members.

Members are the owners of the LLC and therefore have a say in how the business is run. They can vote on major decisions and influence the direction of the company. An LLC offers a flexible structure for owners, who can take on roles similar to those of sole proprietors, partners, or passive investors.

Alternate Titles

Other LLC Titles to Consider

  1. Managing Director
  2. LLC President
  3. Creative Director
  4. Technical Director

LLC Owner Titles to Avoid

No specific rules exist for what LLC members may call themselves.

Management Structures within an LLC

  • Member-Managed LLC: The members actively manage the business.
  • Manager-Managed LLC: Someone other than the members handles day-to-day company operations. Managers are not necessarily owners of an LLC, but the company can elect to make a member the LLC’s manager, often with a title such as “managing member” or “member-manager”.

Choosing an Appropriate Title

The Limited Liability Company (LLC) business structure is a popular choice for entrepreneurs because of its simplicity, personal liability protection, and tax and management flexibility. No specific rules exist for what LLC members may call themselves.

Titles for Officers of an LLC

While corporations are required to have at least one officer, LLCs do not typically have that requirement. Typical officer titles include:

  • Chairman (presides over meetings and manages business affairs)
  • Treasurer (keeps track of the business’s debts and profits, manages the business bank account, and prepares the annual report)

LLC Taxation

LLC Taxed as a Corporation

LLCs can decide to be classified as a C corporation or S corporation. Members acting as managers of an LLC with this classification can be paid by the company, but their wages will be taxed.

Overview of Managing Member Role

Managing Member

A managing member has the authority to act as the agent on behalf of the LLC. "Managing member" a legal designation, is often used as the operational title of the person in this role.

Can You Call Yourself a Founder?

Yes, the head of an LLC can choose from several options for the title to give themselves, including founder, as long as it suits their individual preferences and role in the business. No requirement exists to call oneself president or CEO.

Leave a Comment