LLC Owner Title: Everything You Need to Know
An LLC owner title is the title or position given to the managing member of an LLC. Owner, founder, and partner are examples of these titles.4 min read
What Is an LLC?
An LLC is a type of business, like a corporation or partnership. It is subject to local and state laws regarding businesses.
Some states require that an LLC has at least two members, but many allow for only one member. Ownership restrictions are basically nonexistent in most states allowing individuals and even other types of businesses to act as owners.
The three members of an LLC can be one individual, one corporation, and one other LLC.
Regulations and requirements for LLCs are different depending on the state, but they are meant to help small business owners and entrepreneurs build their companies the way they want.
Company structures look different depending on how things operate and what the owner wants. States want to allow companies to form easily, so they offer flexibility with regulations.
The owner title you choose will reflect how you want people to see your company and its structure. Keep your title straightforward and appropriate for the type of business or services you plan to offer.
LLC Taxed as a Corporation
LLCs can decide to be classified as a C corporation or S corporation. Members acting as managers of an LLC with this classification can be paid by the company, but their wages will be taxed.
There are passive and managing members of an LLC. Members who want to become a manager-managed LLC can either choose one of the members to act as manager or hire someone from the outside.
If one of the members wants to act as manager, there needs to remain at least one passive member. If an outsider is hired, all of the members can remain passive.
What Titles Do You Give an Owner or Partner in an LLC?
Titles available for owners and partners of an LLC are basically unlimited. The only rule is that your title cannot claim any licenses you don't actually have.
The title you choose will say something about your company, so be sure to send the right message with your choice.
Titles that hold legal significance in most states are as follows:
- Members (any owners)
- Managers (person who handles daily business duties)
- Managing members (person who handles company operations)
Members of LLCs who are not involved in the function of the business should be called investors.
Managing members might want to choose a more recognizable title like the company president or chief executive officer (CEO).
If you want your title to reflect your specific role in the company, you could choose something like "creative director."
When certain types of companies want to be viewed differently, they might avoid titles like president and CEO and choose something like managing director or technical director instead.
Traditional Corporate Titles
Titles commonly found in companies include:
- Chief executive officer (CEO)
- Chief operating officer (COO)
- Chief financial officer (CFO)
The first two titles suggest that a company is smaller, while the others make a company seem bigger because they are used throughout the corporate world. Corporations are usually required by state to name four officers:
LLCs are also able to name these officers under state regulations.
An LLC structured like a partnership instead of a corporation can choose titles that reflect this distinction like:
- Managing partner
Fun and Creative Titles
LLC owners and members have the freedom to get a little crazy with their titles. If you don't want to take the traditional route, think of a title that truly reflects the ideals and nature of your company. Instead of president you can choose a title, like "head honcho" or "chief goofball."
Usually your title should reflect your level or position in the company, so try to include some indication of that even in a fun title. Consider simply adding a little creativity to a traditional title, like "chief financial nerd" or "plucky partner."
Technically you can give yourself any title you want as long as you're not leading anyone to think you have certifications or expertise that you don't. You can put "chief ninja wrangler" on your business card, but it might not be great for business.
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