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 term member refers to the individual(s) or entity(ies) holding a membership interest in a limited liability company. 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 is the owner of an LLC called quizlet? ›
D) The owners of an LLC are called general partners or specific partners.
Are you the CEO of your LLC? ›
LLC leadership
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.
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 do you call a owner of a business? ›
Common small business titles. Founder. CEO. Chief Accountant/Chief Accounting Officer (CX or CXO) Managing Director.
What is the correct title for 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 another name for an LLC? ›
LLC stands for Limited Liability Company and is a term that you may see often after the names of companies. Other names and abbreviations that indicate a limited liability company are: L.L.C., limited company, LC, L.C., Ltd. liability company, Ltd. liability co., and limited liability co.
What is LLC also known as? ›
The lateral collateral ligament (LCL), also known as the fibular ligament serves as one of the key stabilizers of the knee joint.
What is a sole proprietor? ›
A sole proprietor is someone who owns an unincorporated business by themselves. If you are the sole member of a domestic limited liability company (LLC) and elect to treat the LLC as a corporation, you are not a sole proprietor.
What is the CEO of an LLC called? ›
LLC Owner Titles to Consider
Some choices for a single-member LLC title are “Owner,” “President,” or “CEO” (Chief Executive Officer). For multi-member LLCs, you might use other corporate titles for LLC owners. These titles can include a COO (Chief Operating Officer) and CFO (Chief Financial Officer).
LLC Members can assign any titles they prefer to Managers or Managing-Members. While “President” is the most popular title for an LLC's top manager, “CEO” is another option that can be held by an LLC Member if they wish.
Am I the CEO or owner? ›
The owner has sole proprietorship of the company and can also be the CEO. On the other hand, the CEO is in charge of the company's overall management but doesn't necessarily have to be the owner.
What is another title for owner? ›
Principal
The title of principal can imply multiple responsibilities that vary from one organization to another but it is most widely used for company founders, owners and CEOs.
Who is higher CEO or owner? ›
In a nutshell, the CEO oversees the entire company's management, whereas the owner holds exclusive ownership rights over the business. In this guide, we will go over the differences and similarities of the two roles, and how they work together for the company's success.
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.
What is the difference between owner and CEO of an LLC? ›
In larger, established corporations, the owner(s) and the CEO are typically different people. While the CEO is heavily involved in decision-making and business operations, the business owner will possess a smaller role in the day-to-day business.
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.
What is the leadership structure of an LLC? ›
The LLC structure also includes the management of the business. There are two basic types of LLC: member-managed and manager-managed LLCs. The manager-managed LLC generally separates the roles of owners and managers of the LLC, even though in practice some of them might be the same people.
What is the difference between proprietor and owner? ›
An owner can either be a person or a legal entity that is the legal proprietor of a business. For example, a corporation (a legal entity) can be the owner of one or more companies. A sole proprietor specifically refers to the individual owner (proprietor) of a business being run as a sole proprietorship.
