Limited liability companies (LLCs) are designed to be flexible in their ownership, taxation, and management. If you’re the head of an LLC, you’ll find that there are also several options for the title you give yourself.
You aren’t required to call yourself president or CEO. But the reality is that you do need a title for business and organizational purposes.
Here are some guidelines to help you choose a title that’s appropriate for you and your business.
Official names for LLC owners and managers
If you own all or part of an LLC, you are known as a “member.” LLCs can have one member or many members.
In some LLCs, the business is operated, or “managed” by its members. In other LLCs, there are at least some members who are not actively involved in running the business. Those LLCs are run by managers. When you formed your LLC, you probably had to specify whether your LLC was managed by members or managers.
If you are member who also has management responsibilities, then you’re a “member-manager.” So, if you’re the head of the LLC, you could correctly refer to yourself as either a member, a manager, or a member-manager.
The problem with these titles is that they don’t mean much to the people you do business with. A “member” sounds like an employee. A “manager” sounds like a mid-level employee rather than the head of the company, and a “member-manager” sounds like someone in charge of membership.
Because they can be confusing to outsiders, these titles may not be the best choice for someone who’s running the business.
Good choices for LLC owner titles
There are two rules you should keep in mind when choosing a title for yourself. First, your title should let outsiders know that you’re a person who likely has authority to sign contracts for the LLC. Second, business owner titles should never be misleading. Here are some acceptable choices:
- Owner
- Managing member
- CEO
- President
- Principal
- Managing Director
- Creative Director
- Technical Director
Titles to avoid or use with caution
Some LLC titles are inappropriate or could cause you trouble. Among them:
- Managing partner, or any other title with the word “partner” in it. Although LLC members may think of themselves as business partners, a partnership is legally different than an LLC. Specifically, a general partnership doesn’t offer its partners any liability protection, and if you sign contracts as a “partner,” it could lead to confusion and increase the chance that you could be held personally liable.
- Proprietor. Many solo LLCs like the sound of this title, but, like a partnership, a sole proprietorship doesn’t offer liability protection. Avoid confusion and use “owner” instead.
- Made-up titles, like “lead coordinator.” Entrepreneurs sometimes invent titles to avoid using traditional corporate names like “president”, but these sorts of titles don’t help outsiders understand your position in the company. Avoid them, or combine them with a traditional title, such as “lead coordinator/CEO.”
- Fearless Leader, Supreme Overlord, Head Elf, or other humorous titles. Use these with caution. They might go over well with your customer base of 20-somethings, but you might wish for something more traditional when you’re negotiating a multi-million dollar contract with foreign investors.
So, what is the head of an LLC called? It’s up to you to decide which LLC owner title feels right for you and the image you want to project for your company. Just be sure your title is clear, doesn’t mislead anyone, and is appropriate for everyone you might do business with.
Find out more about Starting Your LLC
FAQs
The Limited Liability Company (LLC) business structure is a popular choice for entrepreneurs in nearly all industries because of its simplicity, personal liability protection, and tax and management flexibility. An owner of an LLC is called a member, and an LLC may have one or more members.
What is the best title for the owner of an LLC? ›
Good choices for LLC owner titles
- Owner.
- Managing member.
- CEO.
- President.
- Principal.
- Managing Director.
- Creative Director.
- Technical Director.
If you have a single-member LLC, which means that you are the only member, you can choose any title you like to signify that you are in charge. You can name yourself the CEO and/or president, principal, managing partner, director of operations, or a similar term.
Can you call yourself a founder of an LLC? ›
Other Choices for LLC Owner Titles
Titles like owner or founder usually describe a small start-up company. Using more traditional titles in an LLC makes it sound like a larger company.
What is an LLC with one person called? ›
Overview. If your LLC has one owner, you're a single member limited liability company (SMLLC). If you are married, you and your spouse are considered one owner and can elect to be treated as an SMLLC. We require an SMLLC to file Form 568 , even though they are considered a disregarded entity for tax purposes.
Are the owners of an LLC called members? ›
The members are the owners of an LLC, like shareholders are the owners of a corporation. Members do not own the LLC's property. They may or may not manage the business and its affairs.
What do I call myself if I own my own company? ›
The term sole proprietor is also commonly used to describe a self-employed individual who is the legal owner of a business.
What is your position if you own an LLC? ›
The official legal title of an owner of an LLC is Member. All other superfluous titles can be proscribed in the LLCs Operating Agreement, or since you are the sole member you can just pick something. Here are some: President.
What title should I use as a business owner? ›
Different business structures, such as sole proprietorships, partnerships, and corporations, can influence the titles available to owners. In a sole proprietorship, the owner typically uses titles like Owner or Founder, while in a corporation, they may hold titles like CEO, President, or Chairman.
What is the highest position in an LLC? ›
Chief Executive Officer (CEO): Usually the highest ranking member of an organization, the LLC CEO has general management powers and dictates the company's vision.
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.
Do I file LLC and personal taxes together? ›
The IRS disregards the LLC entity as being separate and distinct from the owner. Essentially, this means that the LLC typically files the business tax information with your personal tax returns on Schedule C. The profit or loss from your businesses is included with the other income your report on Form 1040.
Is an LLC considered its own person? ›
According to the IRS, a single-member limited liability company is a "disregarded entity", meaning there is no separation between the business and its owner. By default, the IRS taxes it the same as a sole proprietorship. However, you do have the option to be taxed differently.
What is the proper signature for an LLC owner? ›
Make sure your signature line is formatted like this [Your name], [Your LLC Role], [LLC name]
What is the owner of a limited company called? ›
Most limited companies are 'limited by shares'. This means they're owned by shareholders, who have certain rights. For example, directors may need shareholders to vote and agree changes to the company.
What do you call someone who owns a business? ›
Common small business titles. Founder. CEO. Chief Accountant/Chief Accounting Officer (CX or CXO) Managing Director.
Should I put owner or CEO on my business card? ›
The term “Owner” has lesser gravity than “CEO” or “President,” but it still gives people the (correct) impression that you're an authority in your business as its owner. This option is also perfect if you're a sole proprietor, or if you're working with only a handful of employees.
