A co-owner of a Limited Liability Company (LLC) is officially called a member. If an LLC has multiple owners, it is referred to as a multi-member LLC, where each individual or entity holding a stake is a member. They may also be called a "managing member" if they are active in daily operations.
A limited liability company (LLC) is a business entity type that can have more than one owner. These owners are referred to as “members” and can include individuals, corporations, other LLCs, and foreign entities. Most states do not restrict LLC ownership, and there is generally no maximum number of members.
A limited liability company (LLC) with two or more members is known as a multi-member LLC (MMLLC). Married couples with small businesses, family-owned businesses, friends going into business together for a startup, and businesses with multiple owners often form this type of LLC because of this liability protection.
Common LLC titles include Member, Managing Member, Manager, CEO, President, and variations like Managing Director. In manager-managed LLCs, non-managing members cannot use “manager” or “managing member” as a title.
If you have a single-member LLC, which means that you are the only member, you can choose any title you like to signify that you are in charge. You can name yourself the CEO and/or president, principal, managing partner, director of operations, or a similar term.
The terminology is different for owners of partnerships and LLCs. An owner of a partnership is (unsurprisingly) called a partner. An owner of an LLC is a called a member. As the name suggests, a partnership requires at least two partners. An LLC, however, can consist of a single owner.
The members are the owners of an LLC, like shareholders are the owners of a corporation. Members do not own the LLC's property. They may or may not manage the business and its affairs.
Depending on your ownership structure, you could use traditional titles as LLC member names. Some choices for a single-member LLC title are “Owner,” “President,” or “CEO” (Chief Executive Officer). For multi-member LLCs, you might use other corporate titles for LLC owners.
Names for LLC Owners
For example, if you are the head of the LLC, then you can call yourself a president or CEO. However, LLCs usually refrain from using such titles as it gives the impression that the company is a larger corporation as opposed to a smaller LLC.
A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation.
To split ownership interest in an LLC, you will need to draft an LLC operating agreement. This operating agreement document will outline how profits and losses are divided among members and other controlling provisions such as voting rights and management structure.
The reporting structure pertains to how COOs and CEOs fit within the chain of command. COOs typically report directly to the CEO. They are often the second-highest-ranking executives in the company and are responsible for executing the CEO's strategic vision. CEOs report to the board of directors.
Setting up a Multi-Member LLC: Step-by-step
Partnership. Partnerships are the simplest structure for two or more people to own a business together. There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP).
Titles for Multi-Member LLCs
How to Prove LLC Ownership?
Titles are the easy way for outsiders to understand how to connect with your organization. So if you're the head, just use the title CEO unless you have some strong reason not to. That way people will know to come to you with CEO-ish things. There's no harm in putting "founder" on your business cards as well.
LLC owners can choose from a wide range of titles, including “Member,” “Managing Member,” “Owner,” “Founder,” or corporate-style titles like “CEO.” The best title depends on your LLC's structure, your role, and the image you want to project to clients, investors, and partners.
An LLC can have an unlimited number of owners, called “members” (with few restrictions on who can be a member); an LLC can override its default tax treatment and opt for an S Corporation or C Corporation tax election (if it meets the IRS's qualification criteria); and an LLC can be managed by the LLC's members or one ...
When comparing the differences between LLCs and partnerships, note that the owners of an LLP, limited partnership or general partnership are called partners. LLC owners are called members.
Choosing the Right Partner for Your Business
If you need equal control among partners, go with a general partnership. If you're bringing on silent investors or want to limit liability for some partners, a limited partnership is likely the better fit.