What Is the Owner of an LLC Called?
An LLC owner is primarily known as an LLC member. However, since LLCs can have more than one member, the use of different titles can:
- Communicate the owner’s leadership role to outside entities
- Establish the owner’s internal responsibilities
Our What Is the Owner of an LLC Called guide examines the benefits of choosing titles for owners of an LLC, what titles to avoid, and what titles to consider using.
Recommended: Haven’t created your LLC yet? Get started with our Form an LLC guide.
Basic LLC Ownership Titles
Members
Members are the owners of the LLC. An LLC with one owner LLC is known as a single-member LLC, and an LLC with two or more members is known as a multi-member LLC.
A member’s ownership is typically dependent on the amount of capital they invest into the LLC (which should be outlined in the company’s operating agreement), but all members have some stake in the LLC.
Managers
An LLC can choose to be member-managed or manager-managed. A member-managed LLC is one whose daily operations are handled by all active members. In comparison, a manager-managed LLC is one that is managed by an individual or entity elected by the members of the LLC.
Managers are not necessarily owners of an LLC, but the company can elect to make a member the LLC’s manager. This role often comes with a title such as “managing member.” or “member-manager.”
Choosing a Title for an LLC Owner
Unlike corporations, LLCs are not required to choose specific titles for their owners. That being said, there are benefits to picking an effective title for the owner of an LLC, including:
- Conveying authority and ownership
- Satisfying lenders when building business credit
- Maintaining a consistent and professional look in business documents
- Keeping track of who is responsible for what aspects of the business
LLC Owner Titles to Consider
“Member,” “Manager,” and “Owner” can all be correct titles for an LLC owner, but they do not always communicate what that owner does. Using an effective owner title can help establish a member’s daily duties — both to the company and to other companies (i.e., for contract-signing purposes).
A common title for LLC owners with an overarching executive role is “CEO” or “Chief Executive Officer,” which can signify that the owner is the top decision-maker.
Other “C-Level” titles that a member might hold include:
- COO: A Chief Operating Officer typically handles the day-to-day operations of a company
- CTO/CIO: Chief Technology Officers and Chief Information Officers are often in charge of managing the technical aspects of the company
- CFO: A Chief Financial Officer is usually tasked with managing a company’s finances
C-Level titles may not accurately depict an owner’s job description. Some additional ownership titles may include:
- Managing Director: A Managing Director oversees the company’s daily operations and is often the highest-ranking managerial position. Managing Directors typically report to the CEO.
- President: The President of an LLC may also oversee all business operations and act as “second-in-command” to the CEO. In some smaller businesses, one owner may take on “CEO” and “President.”
- Creative Director: A Creative Director managers the creative aspects of a company, including advertising, branding, and design.
- Technical Director: As the name suggests, Technical Directors often manage the technological functions of a business. These directors typically report to the CTO.
If your company decides to use any of these titles, make sure that each owner understands their roles and that each title is outlined in the company’s operating agreement.
LLC Owner Titles to Avoid
There are certain titles that owners should avoid, as they may be too broad, inappropriate, or unclear. Such titles might include:
- Vague Titles: Titles such as “Manager” or “Director” may not fully articulate your ownership duties to your company and others.
- Humorous Titles: “Inflated job titles” such as “Chief Fun-ancial Officer” or “Manager of Mischief” may be amusing internally, but they will likely send the wrong message to future potential business partners. They may not take you seriously or even avoid doing business with you.
- Inaccurate Titles: Though an LLC is often treated like a sole proprietorship or partnership, referring to owners as “Sole Proprietor” or “Partner” is technically incorrect and may imply that your LLC is not an LLC.
What's the Best Name for an LLC Owner?
Ultimately, the best ownership title for an LLC member will depend on its structure. An LLC with only one member may get away with simply “owner,” while LLCs with multiple members may require more hierarchy and structure.
So long as your LLC’s titles are clearly defined, professional, and easy to understand, an LLC owner can use any title they find appropriate.
Frequently Asked Questions
An LLC is a hybrid structure that combines the limited liability of a corporation with the flexibility of a sole proprietorship or partnership.
Forming an LLC is a good way for a business owner to benefit from pass-through taxation while protecting their personal assets.
You can start an LLC in six simple steps:
- Select a state
- Name your LLC
- Choose a registered agent
- File the Articles of Organization
- Create an Operating Agreement
- Obtain an EIN
You can form an LLC yourself, or you can use an LLC formation service.
Yes. All LLC managers have a duty to act in good faith and reasonably care for the interests of the members. This includes acting honestly, fairly, and impartially when dealing with members, creditors, net-30 vendors, and others involved in the operation of the business.
It depends. The laws governing limited liability companies can differ by state, but, in general, managers of LLCs aren’t personally liable to third parties related to their actions as manager of the LLC — as long as they didn’t act unlawfully.
That being said, managers can be held liable to an LLC and its members if they violate the terms of their contract.
An LLC is not required to elect officers, but some do. Common titles for officers include:
- President
- Vice President
- Treasurer
- Secretary
Adding members to an LLC will depend on the procedures outlined in the LLC’s operating agreement. Typically, this involves a vote among existing members.
Once a new member is added, it’s important to revise your operating agreement.
An LLC is not required to elect directors or a board of directors. Directors are corporate officers who manage the affairs of a corporation.
Operating agreements are legal documents that set an LLC’s ownership structure, member duties, and overall business operations. Most states do not require operating agreements, but it’s good practice to have one.
All LLC owners are legally referred to as "members." A single-member LLC owner can choose to give themselves a title such as “CEO” or “President,” but it must be outlined in their operating agreement.
Sole proprietorships and single-member LLCs operate similarly for tax purposes, but a sole proprietorship is an informal business structure that does not have the personal liability protection that single-member LLCs enjoy.
That being said, since they only have one owner, single-member LLCs must be careful to separate their personal and business finances.