Starting a business can be overwhelming, but figuring out the legal structure is a crucial step. Fortunately, a Limited Liability Company (LLC) business structure is popular among entrepreneurs for its flexibility, simplicity, and liability protection. Let’s face it though, the world of business can be a little confusing, and understanding the various roles and titles associated with an LLC can be intimidating, especially for newbies. That’s why we’re here to help! In this article, we’ll focus on the LLC officer title and answer the all-important question: “What is the owner of an LLC called?” Read on to explore the various titles that come with LLC ownership and management, giving you a better understanding of the roles and responsibilities of LLC members and officers.
What Are the Official Names of LLC Owners
As the popularity of LLCs continues to grow, it’s important to understand the roles and official names of those involved in the company.
LLC members are the people who own a part of the company and are entitled to a share of the profits. They can be individuals, corporations, or other LLCs, and depending on the size and structure of the LLC, there can be one or many members.
LLC managers are responsible for making decisions that benefit the company and managing its daily operations. They can either be members of the LLC or hired from outside the company. If there is no designated manager, then the members are responsible for managing the LLC themselves.
What Are Good LLC Owner Titles
Choosing an appropriate title for LLC owners can help establish their roles and responsibilities within the company. There are several good options to consider when selecting a title for an LLC owner.
- “Owner” is a straightforward and common title that indicates the individual has a stake in the company. It’s simple and easy to understand.
- “Managing Director” is a professional-sounding title that highlights the individual’s role in overseeing the company’s operations. This title is often used in larger LLCs and can be used interchangeably with “Managing Member.”
- “Managing Member” is another option that indicates the individual’s responsibility for managing the LLC’s daily operations. This title is commonly used in smaller LLCs.
- “CEO and President” is a title commonly used in bigger LLCs that sounds formal and professional. This title indicates that the person holding it is responsible for steering the overall direction of the company and has the final say in making significant decisions.
- “Managing, Creative, or Technical Director” are specific titles that highlight an individual’s unique role within the company. These titles are often used in creative or technical industries, where the individual’s expertise in a particular area is crucial to the company’s success.
- “Principal” is a more general title that can be used to indicate an individual’s ownership stake in the company, as well as their leadership role within the organization.
The choice of LLC owner title depends on the individual’s specific role within the company and the company’s size and structure. You’ll want to choose a title that accurately reflects the individual’s responsibilities and helps establish their position within the company.
What Are LLC Owner Titles to Avoid
When it comes to choosing an LLC owner title, it’s important to consider the message that the title sends to clients, customers, and other stakeholders. Some titles may be confusing, misleading, or even unprofessional. Here are some LLC owner titles to avoid:
- “Managing Partner” can be misleading because it implies that the person is a partner in the company rather than an owner. This title is usually used in partnerships, which can cause confusion when used in an LLC.
- “Proprietor” can give the impression that a company is outdated or not up-to-date with modern business practices. Although it may be suitable for some types of businesses, it’s generally not a good fit for an LLC.
- “Other Non-Related Titles” can create confusion and misunderstanding for clients or customers. A title such as “Sales Manager” might indicate a different job role, leading to false impressions of the individual’s position and the company’s size.
Other Titles to Be Aware of
LLC owners should also be aware of other titles that may come up in the course of business. These titles can be important for legal or organizational purposes, and understanding their meaning can help owners navigate the world of LLCs. Here are some other titles to be aware of:
- “Shareholder” is an individual or entity that owns shares of the LLC. While LLCs are not required to have shareholders, some choose to issue shares to raise capital or as part of an ownership structure.
- “Corporate Officer” is an individual who holds an official position in the LLC, such as the president, vice president, secretary, or treasurer. These positions are often required by law and have specific responsibilities and duties.
- “Registered Agent” is a title given to an individual or company that is designated to receive legal documents and official correspondence on behalf of the LLC. This can include notifications of lawsuits, subpoenas, or other legal notices.
Understanding these titles can help LLC owners understand their legal and organizational responsibilities, and ensure that their company operates smoothly and efficiently.
Choose LLC Titles Carefully
Choosing the right title is an important decision for LLC owners. It can impact how the company is perceived, and can even have legal implications. Avoiding confusing or outdated titles, and understanding other important titles like shareholders, corporate officers, and registered agents, can help LLC owners operate their businesses smoothly and professionally.
If you’re a business owner looking for guidance on your LLC, doola can help. Their expert team can provide a wide range of financial and administrative services to help your business thrive.
What is the best title for the owner of an LLC?
The best title for the owner of an LLC may vary depending on the individual’s role and responsibilities within the company, and there is no one-size-fits-all answer. However, common titles for LLC owners include “member,” “managing member,” or “manager.”
What is the highest position in an LLC?
The highest position in an LLC can also vary depending on the company’s structure and the roles of its owners. However, the title of “CEO and President” is commonly used in larger LLCs and suggests that the individual is in charge of the company’s overall direction and has the final say in major decisions.
Who has the most control in LLC?
In an LLC, control is typically shared among the owners, who are known as members. However, the level of control each member has may vary depending on the company’s operating agreement. In some cases, a managing member or manager may have more control over the day-to-day operations of the business, while other members may have more input into major decisions.