The owners of an LLC are called "members." A single-owner LLC will contain one member and own 100% of the LLC. Ownership in an LLC typically entitles the owners to profits, losses, cash distributions, and voting rights.
If you create a single-member LLC, you own 100 percent. An LLC is a business structure created and governed by state laws. Many states allow single-member LLCs. Other states require at least two members. Exception: If an LLC is taxed as an S-Corp with the IRS it can’t have over 100 shareholders. If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner’s tax return.
An LLC may own multiple, single-member LLCs in a holding company structure. An LLC may serve as the master entity and own a series of LLC cells if state statute offers this option. In most states, an LLC can own another LLC as a subsidiary. This shields each LLC from risks if separate identities and operations are maintained.
Funding and Names for LLCs
One LLC can fund another LLC either through an equity investment or a loan. There are considerations for each funding type to discuss with an attorney. An LLC can file a DBA to do business under a second name, but the DBA is considered part of the same LLC.
LLCs in Different Jurisdictions
In the UAE, a national sponsor will hold 51% of an LLC’s shares. Ajman Media City is the cheapest UAE free zone. LLC membership is very flexible. Members can manage the LLC or hire a third party. LLC profit distribution does not follow membership percentage. So, a minority owner can outearn a majority owner. A single-member LLC offers less protection from creditors compared to a multi-member LLC. An LLC limits owners’ personal liability and offers tax advantages and flexible management.