Officer Titles for LLC: Everything You Need to Know
When coming up with officer titles for LLC, it is important to know that each officer has a different title as well as a different set of responsibilities. 3 min read
When coming up with officer titles for LLC, it is important to know that each officer has a different title as well as a different set of responsibilities. In an LLC you are free to create and develop any titles that you choose although there are certain statutory designations required of persons that carry specific titles.
One of the benefits of LLCs is their flexibility in creating their own management and structure. There are some common titles that you may want to include such as a treasurer and vice president, though those titles are not required positions under state law.
Owners of an LLC are not required to take a title such as a CEO or President which is appealing for many startup companies that either prefer a more casual structure or don't want to imply that they are a big corporation.
It is important when creating titles that you check out your state regulations to make sure your company has the required titles. You may also want to create certain titles that are necessary to secure specific contracts with other persons or business entities.
Official Names for LLC Owners and Managers
There are many titles that should be considered when assigning titles for your LLC. Some of the designations are legally required and others may be common but not necessary for all businesses.
- Member - Member is a designation for anyone who has ownership in an LLC.
- Managing-member - A managing member is an owner that is designated to run the day-to-day business operations of the LLC.
While these two titles are most commonly used when referring to an LLC, they don't sound very official to outside companies doing business with the LLC and because of that, certain members that are included in the running of the company may choose to be referred by more commonly recognized titles such as president, vice president, and secretary.
Before assigning a title to each managing position in a company, you will want to first identify what type of manager they are.
- Internal manager - These managers are members who have ownership in the LLC as well as run it.
- External manager - An external manager is someone hired outside of ownership designated to help run the company.
What Are Good Title Choices?
There are multiple titles that an owner of an LLC may choose to take, but it is important to remember that when choosing a title you make sure it reflects your duties as well as your authority as an owner in the business. Additionally, you will want to make sure that your business title does not mislead people as well. Some titles LLC owners may use include:
- Owner - Owner is a simple and popular choice that clearly indicates your role in the business.
- Managing-member - This title will not only indicate your ownership but also let others know you are part of the day-to-day management activity of the business.
- CEO or President - These titles indicate your place as one of the heads of the company and are more authoritative sounding for contracts with other business entities.
- Principal - This designation is most commonly used for owners of service firms.
- Managing, Creative, or Technical Director - These titles have become popular alternatives to CEO and President especially for creative or technology-based companies.
Titles to Use With Caution
While you are typically free to designate any titles you want with an LLC, there are some titles that you should approach with caution to avoid trouble with state legal authorities. Some of the titles to watch out for include:
- Managing partner - Even if your LLC is a partnership agreement between owners unless your company is legally identified as a partnership, don't use it in your title. Since partnerships do not protect owners from liability, signing a contract with the title partner could lead to an increased chance of personal liability.
- Proprietor - Having the title ofproprietorships"> proprietor may indicate to outsiders that the business is a sole proprietorship instead of an LLC and you could run into the confusion on liability similar to that of using the term partner.
- Made-up titles - Made-up and unfamiliar titles may confuse others as to your true position in the company.
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