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.
Members must be publicly declared in the Articles of Organization:

• If the LLC is member managed, all members must be identified. 
• If the LLC is manager managed, then only those members who own 20% or greater interest in the company need to be identified in the Articles.

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.