LLC Ownership Structure: Who is the Owner of an LLC?

An LLC, or Limited Liability Company, is a popular business structure that offers personal liability protection and tax benefits. One of the key aspects of an LLC is its ownership structure, which can be complex and involve multiple owners. In this article, we will explore the different types of owners of an LLC and what they are called.

The owner of an LLC is typically referred to as a member. Members are the individuals or entities that own an interest in the LLC and share in its profits and losses. There can be one or multiple members in an LLC, and each member's ownership percentage is typically reflected in their capital contribution to the company.

There are several types of members in an LLC, including:

• General Members: These are members who have unlimited personal liability for the debts and obligations of the LLC. General members are typically responsible for managing the day-to-day operations of the LLC.
• Manager Members: These are members who have limited personal liability for the debts and obligations of the LLC. Manager members are typically responsible for making strategic decisions and overseeing the operations of the LLC.
• Passive Members: These are members who do not participate in the management of the LLC and have limited personal liability for its debts and obligations.

In addition to members, an LLC can also have other roles, such as:

• Managers: These are individuals who are responsible for managing the LLC and making strategic decisions. Managers can be employees or independent contractors.
• Officers: These are individuals who are responsible for the administrative tasks of the LLC, such as filing taxes and maintaining records.

It's worth noting that the specific roles and responsibilities of members and managers can vary depending on the LLC's operating agreement and state laws. It's always a good idea to consult with an attorney or accountant to determine the best ownership structure for your business.

In conclusion, the owner of an LLC is typically referred to as a member, and there are several types of members, including general members, manager members, and passive members. Understanding the different roles and responsibilities of members and managers is crucial for setting up and running a successful LLC.