An owner of a Limited Liability Company (LLC) who holds a percentage of the business, known as a membership interest, and has certain rights to profits, voting, and participation in the company’s management.
What is a Member?
A member in an LLC is an individual or entity that owns part of the company, similar to a shareholder in a corporation. Members contribute capital, which may be in the form of money, property, or services, in exchange for a percentage of ownership. This ownership is referred to as a membership interest, and it determines how profits, losses, and voting power are distributed among members.
LLCs can have single members (one owner) or multiple members. Depending on the LLC’s management structure, members may directly manage the company (member-managed) or appoint one or more managers to handle daily operations (manager-managed). In a member-managed LLC, all members typically have authority to make business decisions, sign contracts, and represent the company.
For non-U.S. founders, being a member of a U.S. LLC allows ownership and profit participation without necessarily residing in the United States. However, members may still have U.S. tax obligations depending on the nature of the income and applicable tax treaties.
Members are generally not personally liable for the company’s debts and obligations beyond their investment, as long as the LLC is properly maintained as a separate legal entity. Their rights and responsibilities are usually defined in the Operating Agreement, which covers topics such as profit distribution, voting rules, capital contributions, and procedures for adding or removing members.
