What Is the Owner of an LLC Called? (Official Titles Guide)

Jon Morgan
Published by Jon Morgan | Co-Founder & Chief Editor
Last updated: October 5, 2023
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The official title of limited liability company owners can be altered to reflect the specific role that characterizes the position.

After conducting a thorough analysis of what is an LLC owner called, our legal research panel will provide you with a comprehensive explanation of the titles of an LLC owner.

The article is backed by the necessary research and personal experience to ensure accuracy and credibility.

Quick Summary

  • An LLC owner is commonly referred to as a member.
  • CEO, principal, managing member, or president may be used to designate the position more clearly.
  • The position of other LLC members should be aptly titled to distinguish their specific functions in the organization.

What Is the Owner of an LLC Called - Main Titles

The owner of an LLC may be called a CEO, principal, managing member, or president to name a few. The title should reflect the LLC owners' main role in the entity.

The chief executive officer, chief operating officer, and chief financial officer are not generally LLC members.

Those positions usually belong to managers or other non-member professionals.

Other officer titles can include vice president, secretary, treasurer, and assistant treasurer.

Like directors of a corporation, LLC officers must manage the LLC.

Who Are Members of an LLC, and Who Manages the LLC?

An LLC owner explaining to a secretary what is the owner of an llc called

The owners are the members of an LLC, and the business entity may be managed by appointed members or hired managers.

LLCs are either member-managed or manager-managed, depending on how the operating agreement specifies that LLC managers are appointed.

A member can't be an LLC manager unless the LLC's operating agreement specifically provides for it.

An LLC with multiple members can also have a different LLC owner title, offering different rights and possibly different voting powers.

LLC membership interests are freely transferable, unlike LLC membership interests in a corporation.

Other LLC Titles to Consider

Apart from the owner of the business, there are other LLC titles to consider to clearly define the roles of certain positions. It would reflect the organizational structure of the company that directly impacts investors.

1. Managing Director

The managing director oversees the LLC’s daily operations and is in charge of decisions regarding finances, compliance, work organization, and reporting.

They are mostly the highest-ranking positions in the executive department. Often, these people directly report to the CEO.

2. LLC President

An LLC President could also do the same functions as a Managing Director. They act as the CEO’s second-in-command. A sole proprietor can take both “CEO” and “President” titles in smaller businesses.

3. Creative Director

These managerial titles are for the company’s creative aspects. It includes branding, design, and advertising.

4. Technical Director

Technical directors manage the business’s goals, project specifications, requirements, and progress reports.

If your LLC decides to use these titles, ensure every designated member other than the owner knows their role. Outline each official title in the company’s operating agreement to make it easier for everyone.

LLC Owner Titles to Avoid

The following LLC owner titles need to be avoided since they are broad, unclear, or inappropriate.

  • Vague Titles. “Manager” or “Director” is too broad. These titles might not fully convey your duties to the LLC. This ambiguity could discourage other companies and investors from dealing with you.
  • Inaccurate Titles. LLCs are often considered partnerships or sole proprietorships. However, “Sole Proprietor” or “Partner” is incorrect since it could make people misunderstand your business type.

Does the Owner of an LLC Refer to Member-Managed LLC and Manager-Managed LLC?

A bearded person wearing a formal suit looking at his laptop

The LLC owner does not refer to member-managed LLC and manager-managed LLC.

1. Manager-Managed LLC

An LLC managed by a manager means the members will not be involved in making business decisions for the LLC, such as member meetings and managing legal documents.

The manager would make those decisions and is often referred to as manager-managed. They will have a say in business operations.

This type of LLC can have one or more managers.

2. Member-Managed LLC

A member-managed LLC appoints one or several members to oversee the company's day-to-day operations in terms of finances, investments, decision-making, and work organization.

Since most LLC owners want to limit their liability, an LLC member-manager is more common than a corporation serving as a director.

On the other hand, self-managed limited liability companies (LLCs) have their LLC members, the business owner/s, generally active in making policy decisions.

Each member manager may act on behalf of the company in this management structure. They are usually entitled to bind the LLC.

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When Does Selecting Managers Make Sense?

Selecting managers makes sense when the company needs to designate an individual or entity to oversee business operations.

A structure managed by members is more common for single and multi-member LLCs. However, hiring an independent manager makes sense to obtain the expertise beneficial to the business.

Hiring an experienced independent manager features the following advantages:

  • Attract and encourage passive investors: Consider designating managers if you have many individuals supporting your business but opt out as active participants [1]. It allows these investors to keep staying in the background.
  • Large Memberships: The lack of limitation on the number of LLC members is financially beneficial. However, it makes management more challenging. If your decision-making is too complicated or divisive, get a non-member manager.
  • Growth: Even LLCs with this structure have the potential to grow. When it happens, it's better to hire a manager to manage daily operations. After all, you can change your company status at any point.
  • Multiple Locations: If your LLC has various areas, hiring LLC managers is the best course of action. Having one per location makes it easier to hire and manage other employees. They can handle each area's daily operations, allowing you to focus on the bigger picture.


How Many Members Can Be In an LLC?

An LLC may have an unlimited number of members who can be individuals, other LLCs, or corporations.

An LLC has certain advantages over corporations, such as the flexibility to determine the LLC members' percentage of ownership and continuity of life after one member withdraws.

What if There Are No Members?

If there are no members, a one-person is usually referred to as a single-member LLC, and the single LLC member holding ownership interest is generally referred to as a member manager instead of a sole proprietor.

What Is the Liability Protection of Members in an LLC?

The liability protection of members in an LLC dictates that LLC owners are not personally responsible for debts or liabilities incurred by the LLC, unlike a single-member LLC.

Each state's laws provide that, unless agreed otherwise by the interested parties, all business decisions are made by majority vote or unanimous consent, which requires that all members approve any liability of the LLC.

LLC Owners' Titles

The LLC owner is generally referred to as a member. However, the title may be revised to define the role of the position more clearly.

You can avail of specific designations using top online legal services to properly designate and define the roles and responsibilities of the LLC owners.


  1. https://www.investopedia.com/news/active-vs-passive-investing/

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