|Member Of An LLC|
What is a member?
A “member” is an owner of an LLC and is the equivalent to a shareholder in a Corporation or a Partner in a Partnership. A member is not restricted to being an individual, but can be an individual, Partnership, Trust, Corporation, or other type of entity. An LLC can be owned by a single member or multiple members. A member of an LLC is not liable for the obligations of the LLC solely by reason of being a member.
Tax Considerations: While the member is not restricted to being an individual, there may be some restrictions depending on how the LLC elects to be taxed. The IRS requires that an S-Corporation cannot be owned by another S-Corporation. Therefore, if an LLC elects to be taxed as an S-Corporation, the LLC cannot have a member that is an S-Corporation. For more information regarding taxation, please contact your accountant.