Key Takeaways

  • An LLC can have a CEO, president, or other executive titles, even though it’s not legally required.
  • Titles like CEO or president can be useful for clarifying authority and professionalism in business dealings.
  • LLCs can be member-managed or manager-managed, and titles should reflect actual responsibilities.
  • Misleading or informal titles can confuse clients, suppliers, or regulators and should be avoided.
  • Title choices can impact investor confidence, branding, and how the company is perceived externally.
  • The LLC operating agreement should clearly define titles, roles, and authority.
  • You can find an experienced business attorney on UpCounsel to help structure your LLC and define roles.

President of LLC

The President of LLC is one of the many titles you can give yourself if you are an owner of an LLC. An LLC, also referred to as a limited liability company, is a popular business structure for small business owners. Unlike a corporation, the LLC doesn’t have to appoint a board of directors or hire managers. LLCs are created under state laws, which vary depending on the state in which you register. There is great flexibility in terms of the management structure of the LLC. Such owners, called members, can create their own organizational structure and give themselves titles.

Can an LLC Have a CEO?

Yes, an LLC can have a CEO, but it is not a legal requirement. LLCs are designed with management flexibility in mind, and while many adopt informal or member-centric titles, some choose to use titles like Chief Executive Officer (CEO) or President. This is particularly common in LLCs that want to present a more formal or corporate image to investors, clients, or partners.

Assigning the title of CEO in an LLC structure can clarify who holds executive decision-making power, especially in a manager-managed LLC. In a single-member LLC, the sole owner may choose the CEO title to convey leadership and authority when dealing with third parties. In a multi-member LLC, appointing one member or an external party as CEO helps establish a clear chain of command.

However, it’s crucial that the title is aligned with the actual duties and authority assigned in the operating agreement. Simply using the title “CEO” without defining responsibilities can lead to internal confusion and legal complications.

Names for LLC Owners

Since the LLC business structure is very flexible, owners can use different titles. 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. But for small business owners, they are usually unsure of what to call themselves.

When the LLC initially registers, the members will need to determine how the business will be managed. The members can choose to operate as either a member-managed or manager-managed LLC. If the members choose to run the LLC, then they will all be given certain duties and responsibilities to properly oversee the daily operations of the business. However, the members might want to hire a third-party manager who is responsible for such oversight. Therefore, the manager will have full oversight of the business operations while the members continue to have voting rights and authority to make major business decisions. A third option could be a multi-member LLC hiring a member to act as the manager. This person will be referred to as a member-manager.

Quite often, members often feel like employees and managers have a higher sense of power since they have management responsibilities over the business. But such terms can be confusing to others potentially doing business with your LLC. Therefore, you’ll want to be careful when choosing titles for your members.

Choosing Your Title

There are two rules to be mindful of when choosing a title for yourself or another member. First, your title should allow others to understand that you have the authority to sign contracts for the LLC. Second, your title shouldn’t be misleading. Some good titlesto choice include:

  • Owner, particularly if your LLC has few members
  • Managing member, for those who have managerial authority
  • CEO
  • President
  • Principal, which is a good choice if operating a service firm
  • Managing Director, creative director, or technical director, particularly for technology companies

Common Titles Used in LLCs

Here are several commonly used titles for members and managers in LLCs, along with typical contexts in which they are used:

  • CEO (Chief Executive Officer): Often used in larger or more formal LLCs to denote the top executive.
  • President: A common alternative to CEO, especially in client-facing roles.
  • Managing Member: Appropriate when a member is actively managing the day-to-day operations.
  • Managing Partner: Though legally sensitive, sometimes used in LLCs with a partnership-like structure (use cautiously).
  • Principal: Suitable for owners of small service-based LLCs.
  • Operations Manager or Director of Operations: Useful in a manager-managed structure where responsibilities are function-specific.
  • Founder: More of a branding or startup culture title than a functional one, but often paired with another title like CEO or Managing Member.

Be mindful of state-specific rules and whether your title implies fiduciary or legal responsibilities.

Factors to Consider When Selecting a Title

When deciding whether to use titles like CEO or President in your LLC, consider the following:

  • Legal Clarity: The title should reflect the authority granted in your LLC’s operating agreement.
  • Perception: Some clients and investors may expect to see familiar corporate titles, especially if your business is growing or seeking funding.
  • Size and Structure of LLC: A CEO title may be more appropriate for larger or manager-managed LLCs with complex operations.
  • Industry Norms: In some industries, corporate-style titles like CEO or Managing Director are standard and expected.
  • Internal Operations: Titles can help delineate roles among members and managers, making decision-making more efficient.

Using a well-understood title can ease negotiations, contract signings, and interactions with banks, investors, or government agencies.

Titles to Avoid

While there are several good choices for titles, there are also some titles that you might want to avoid. Calling yourself a managing partner, or anything with the term “partner” might allude to your LLC as a partnership, which is legally different from an LLC. This title shouldn’t be used as others might assume that you operate as a partnership and, therefore, that you don’t have liability protection. Another title to avoid is proprietor. Many single-member LLCs like to use this title, but, similar to the partnership title, a sole proprietorship doesn’t offer limited liability protection. This could cause confusion for others who might be conducting business with your LLC.

Other titles to avoid include made-up titles, i.e., head of technology. Some single-member LLC owners want to create their own title, but it is best to stick with traditional titles like CEO or president. Made-up titles don’t provide any understanding to outsiders. Therefore, some suppliers and vendors might not want to do business with you if they are unsure of your position with the business.

You should also avoid humorous titles, i.e., head honcho in charge or leader of the world, as this could actually reduce your customer-base. While some younger customers might appreciate the humor, most other customers won’t want to do business with you, particularly if the contract involves a significant amount of money.

Why Titles Matter: Legal and Practical Implications

The title you choose for yourself or others in the LLC isn’t just about image—it has practical and legal consequences:

  • Contracts and Liability: If someone signs contracts as “CEO” but doesn’t have that authority per the operating agreement, it could result in unenforceable agreements or even personal liability.
  • Banking and Financing: Financial institutions often require clarity on who has signing authority. Using clear titles like CEO or Managing Member can streamline this.
  • Disputes and Litigation: In legal disputes, courts will look at the actual authority granted in your governing documents—not just the title used.
  • Branding and Growth: Corporate-style titles can boost your credibility with clients and vendors, especially as your LLC scales.

To avoid confusion or disputes, ensure your operating agreement includes role definitions and authority for each title used.

Frequently Asked Questions

  1. Can an LLC have both a CEO and a President?
    Yes, an LLC can designate both a CEO and a President, as long as the roles and responsibilities of each are clearly outlined in the operating agreement.
  2. Is it better to call myself CEO or Managing Member in an LLC?
    It depends on your audience and structure. CEO may offer more external credibility, while Managing Member clearly reflects internal authority.
  3. Can a non-member be the CEO of an LLC?
    Yes, a non-member can be appointed as CEO in a manager-managed LLC, as long as that role is authorized in the operating agreement.
  4. Does calling myself CEO make my LLC a corporation?
    No, using the title "CEO" does not change your LLC’s legal structure. It remains an LLC unless formally converted into a corporation.
  5. Should the LLC operating agreement mention titles like CEO?
    Absolutely. The operating agreement should explicitly define any titles used, along with their associated authority and responsibilities.

If you need help thinking of titles for the members of your LLC or if you are unsure of what to call yourself for your single-member LLC, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.