In a Limited Liability Company (“LLC”), a "member" refers to an owner of the LLC. Members can be individuals, other LLCs, corporations, or any combination of these. Some key points about members in an LLC:
Ownership Interest. Members hold an ownership interest in the LLC, which may be expressed as a percentage of ownership, shares, or units.
Limited Liability. Members enjoy limited liability protection, meaning their personal assets are generally protected from the debts and liabilities of the LLC.
Management Structure. An LLC can be member-managed or manager-managed. In a member-managed LLC, all members participate in day-to-day operations. In a manager-managed LLC, members appoint one or more managers to handle operations.
Responsibilities. The rights and responsibilities of members are usually outlined in the LLC's operating agreement, allowing for flexible arrangements tailored to the needs of the members.
Profit Distribution. Members typically share in the profits and losses of the LLC based on their ownership interests, but this can also be specified in the operating agreement.
Overall, members are central to the operation and governance of an LLC.
