Overview of LLC Ownership
Absolutely, a Limited Liability Company (LLC) is designed to be flexible and can indeed have multiple owners. This feature allows for an inclusive and diverse business structure, accommodating various individuals or entities as part of the company’s ownership.
Understanding LLC Membership
What Is an LLC Member? A Limited Liability Company (LLC) offers a flexible structure that can accommodate multiple owners or ‘members’. The unique structure allows for shared management and profits while providing each member with limited liability protection.
Multi-Member LLC Structure and Ownership
A multi-member LLC can have unlimited owners, except an S corporation which limits to 100 owners. All 50 states allow multi-member LLCs. The multi-member LLC has more than one owner but is a separate legal entity.
Dividing Ownership in an LLC
LLC ownership percentage is usually determined by how much equity each owner has contributed. In a multi-member LLC, there’s flexibility when it comes to management structure.
Changing LLC Ownership Percentages
To change LLC ownership percentages, file new ownership percentages with your state and notify LLC members of the change. Address how profits and losses will be divided according to ownership percentages.
Operating Agreement Details
Owners of an LLC are called members, with their membership interests detailed in the operating agreement. The agreement gives specifics regarding company ownership. LLCs have a formal structure for documenting multiple ownership details in an operating agreement.