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Deciding what to call yourself as the owner of an LLC can feel surprisingly complicated. Should you choose “Member,” “Managing Member,” or something more distinctive like “Principal” or “Founder”? The title you select will shape how clients, partners, and employees perceive your role, so what is the owner of an LLC called?
Whether you’re navigating single-member LLC owner titles or multi-member LLC positions, finding the perfect title that fits your leadership style and aligns with your business’s identity is essential. Let’s explore the options and determine the best title for LLC owners through our comprehensive article!
What do you call the owner of an LLC?
Determining the appropriate title for an LLC owner can be a critical decision, as it reflects your role within the company while ensuring clarity in professional interactions. So, “what is my title if I own an LLC” you may ask? Let’s explore the most common titles for LLC owners and their specific applications.
Official titles for LLC owners
In general, the owners of a limited liability company are known as “members.” This is the standard term used in legal documents and represents anyone with an ownership interest in the LLC. In cases where the LLC adopts a manager-managed structure, the title “manager” may also apply to individuals responsible for the day-to-day operations.
- Member: The most common title, “member,” is universally recognized and suitable for single-member or multi-member LLCs.
- Manager: If the LLC is manager-managed, the title “manager” denotes someone tasked with operational leadership, which may include owners or external appointees.
These titles provide a straightforward way to define roles while maintaining compliance with legal and organizational norms.
Members vs. managers
Understanding the distinction between members and managers is essential when choosing the best title for LLC owners:
- Members: Owners of the LLC who hold financial interests and, depending on the LLC’s structure, may or may not participate in daily management. Single-member LLCs often default to a simple “member” title, while multi-member LLCs can include both active and passive participants.
- Managers: Individuals designated to oversee operations, which could be a member or a non-owner. In a manager-managed LLC, the title of manager clearly separates operational responsibilities from ownership interests.
Other common titles
Beyond “member” and “manager,” many LLC owners opt for titles that better reflect their leadership role. So what is the title of the owner of an LLC in these cases?
- Owner: A simple and direct choice that emphasizes ownership without implying management.
- Founder: Highlights your role in establishing the company, commonly used for startups.
- CEO or president: Suitable for LLCs operating on a larger scale or with corporate-style structures, though these titles may feel formal for smaller entities.
Ultimately, the best title for an owner of an LLC should align with the company’s structure, your role, and how you wish to represent yourself professionally.
Why is it important to use the right title?
Choosing the correct title for an LLC owner is more than a formality; it has significant implications for communication, professionalism, and legal clarity. So, what is the owner of an LLC called, and why does it matter?
Clear communication
Using the appropriate title for an LLC owner ensures your role and responsibilities are understood by clients, partners, and employees. Whether the title is “member,” “manager,” or another designation, it defines your position within the LLC’s structure. For example, a single-member LLC owner title like “managing member” conveys both ownership and operational authority, avoiding confusion.
Legal consequences
The title of an LLC owner is critical in legal contexts. Contracts, agreements, and official documentation often rely on official titles to validate authority. Ambiguous or incorrect LLC owner titles can lead to disputes, misunderstandings, or even legal challenges.
Building trust and credibility
Selecting a professional title instills confidence in stakeholders. Titles like “founder” or “principal” can add a layer of credibility, helping establish trust in negotiations, partnerships, and customer interactions.
Internal consistency
Within the LLC, clearly defined titles maintain organizational clarity. Titles for LLC owners, such as “member” or “manager,” help distinguish roles and responsibilities, ensuring all parties understand their place in the hierarchy.
What should my title be for my LLC? Tips you may need
When selecting a title for an LLC owner, it’s important to keep the role clear, professional, and legally accurate. The right title reflects your responsibilities and the structure of the business.
Keep it relevant to your role
The title of owner of an LLC should clearly represent your responsibilities. For a single-member LLC owner, titles like “Owner” or “Managing Member” are appropriate. In a multi-member LLC, titles such as “Managing Partner” or “Member-Manager” work well to indicate shared leadership.
Consider external perception
The title should help external parties understand your authority and position within the LLC. If your business operates similarly to a corporation, you might use titles like “CEO” or “President.” For a more collaborative approach, the “Managing Member” communicates the role effectively without overcomplicating matters.
Make sure it is legally accurate
It’s essential to choose titles that reflect the legal structure of your LLC. The owners of LLC are called a member, and if the LLC is manager-managed, the title would be manager. Using terms consistent with your operating agreement avoids legal misunderstandings.
Avoid overly complex or inflated titles
While creativity can be appealing, titles like “Chairperson” or informal ones like “Boss” should be avoided, as they can lead to confusion or legal ambiguity. Stick to clear and precise titles that describe the operating agreement and your role in the LLC.
Title options to consider for LLC owners
What are owners of an LLC called in the case of your enterprise? Below are a few suggestions from us that you may find helpful:
Member
For most LLCs, especially single-member LLCs or multi-member LLCs, the owner is legally referred to as a “member.” This is the most common term and aligns with the legal structure of the business.
Manager
If your LLC is manager-managed, the title of manager is often used for the person overseeing operations. This title reflects authority and operational responsibility within the company.
Founder
For a business that emphasizes its origins, the title of founder communicates leadership and initiative. It’s particularly suitable if you were the person who established the LLC.
Owner
Who is the owner of an LLC? The simplest and most direct LLC owner title, “Owner” reflects your stake and control over the entity, especially in a single-member one where you are the sole proprietor.
CEO
If you wish to position your LLC as a more corporate entity, using the title CEO (Chief Executive Officer) helps emphasize the leadership aspect of your role.
President
Similar to CEO, the title for owner of LLC “President” indicates a senior position of responsibility, but may be more appropriate for LLCs that function with a more formal management structure.
Director
For those overseeing specific areas within the LLC, the title of Director works well, particularly for a multi-member LLC where responsibilities are divided among individuals.
Principal
The title of Principal is often used in small businesses to convey senior ownership while maintaining flexibility in the company’s structure.
Managing Partner
In a multi-member LLC, a Managing Partner can be an ideal title for the owner taking on a more active role in management and decision-making.
Each of these LLC titles effectively communicates ownership while respecting both legal and operational guidelines.
If you’re looking to form your LLC, BBCIncorp can assist with the process of
Conclusion
What is the owner of an LLC called? Choosing the right LLC owner title is more than just a formality: it’s an opportunity to define your leadership and align your company’s identity with its values. Whether you’re the sole visionary behind a single-member LLC or part of a dynamic team in a multi-member LLC, your title is a reflection of your role and your business’s structure. The title you choose should convey authority, clarity, and professionalism.
At BBCIncorp, we’re here to help guide you through the process of forming your company and selecting the ideal business titles for LLCs with ease. Reach out to us at service@bbcincorp.com for timely assistance!
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
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