question.jpgIn Business Law

What is the owner of an LLC called?

The owners of an LLC are called members. By way of comparison, the owner of a sole proprietorship is called a sole proprietor, the owners of a partnership are called partners and the owners of a corporation are called shareholders.

Members typically purchase their membership interest by making capital contributions to the company. In some LLCs, called member-managed, the members themselves manage and control the company. In other LLCs, known as manager-managed LLCs, outside managers control the company.