A Member is an owner of a Limited Liability Company (LLC). LLCs can have one or more members, depending on their structure (e.g., Single-Member LLC or Multi-Member LLC). A member can be an individual, another company, or even a foreign entity.
Members typically hold:
- Ownership interest (expressed as a percentage or unit)
- Voting rights and authority in decision-making
- Rights to receive profits and distributions
- Responsibilities as defined in the Operating Agreement
Members may choose to manage the LLC themselves (member-managed) or appoint one or more managers (manager-managed) to run daily operations.
Why is it important?
Understanding the role of a member is key to defining ownership, control, and financial entitlements in an LLC. For legal and tax purposes, being listed as a member may trigger reporting requirements (e.g., IRS filings such as Form 5472 for foreign-owned LLCs).
Who is it for?
Anyone who owns part (or all) of an LLC—whether U.S.-based or international—is considered a member. Even foreign individuals and entities can legally be LLC members in the United States.
