You are not compelled to use any specific title, but you must ensure that the title you choose is acceptable and does not mislead anybody.
Limited liability corporations (LLCs) are intended to be versatile in terms of ownership, taxes, and administration. If you’re the owner of an LLC, you’ll discover that you have various alternatives for the title you offer yourself.
You are not obligated to use the titles President or CEO. However, a title is required for commercial and organisational reasons.
Here are some tips to help you choose a title that is acceptable for you and your company.
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LLC Owners and Managers’ Legal Names
A “member” is someone who owns all or part of an LLC. LLCs may have one or more members.
The company is operated, or “managed,” by the members of certain LLCs. Other LLCs have at least some members who are not actively engaged in the operation of the firm. Managers are in charge of these LLCs. You presumably had to declare whether your LLC was managed by members or managers when you founded it.
You are a “member-manager” if you are a member who also has management duties. So, if you’re the owner of the LLC, you may call yourself a member, a manager, or a member-manager.
The issue with these titles is that they don’t signify anything to the individuals with whom you conduct business. A “member” sounds like a worker. A “manager” sounds more like a middle-level employee than the company’s CEO, while a “member-manager” sounds like someone in charge of membership.
These titles may not be the ideal option for someone in charge of the company since they might be misleading to outsiders.
Possibilities for LLC Owner Titles
When selecting a title for oneself, there are two principles to follow. First, your title should indicate to outsiders that you are a person with the ability to execute contracts for the LLC. Second, the titles of firm owners should never be deceptive. Here are some suitable options:
Owner
Member in charge
CEO
President
Principal
Director of Operations
Director of Creative
Director of Technology
Avoid or Use With Caution Titles
Some LLC names are unsuitable or may cause you problems. Among them are:
Managing partner, or any other title that includes the term “partner.” Although LLC members may consider themselves to be business partners, a partnership is not legally the same as an LLC. A general partnership, in particular, does not provide its participants with any liability protection, and signing contracts as a “partner” may cause confusion and raise the likelihood that you will be held personally accountable.
Proprietor. Many sole proprietorships appreciate the sound of this moniker, but, like a partnership, it does not provide liability protection. To avoid ambiguity, use “owner” instead.
Titles made invented, such as “lead coordinator.” Entrepreneurs may construct titles to avoid using typical corporate designations such as “president,” but these titles do not assist others understand your role in the organisation. Avoid them, or combine them with a standard title, such as “chief executive officer/lead coordinator.”
Fearless Leader, Supreme Overlord, Head Elf, and more amusing titles are possible. Use them with extreme care. They may appeal to your 20-something consumer base, but when negotiating a multi-million dollar deal with overseas investors, you may yearn for something more conventional.
So, what is the title of the head of an LLC? It is up to you to choose which LLC owner title feels appropriate for you and the image you want to present for your business. Simply make certain that your title is straightforward, does not mislead anybody, and is acceptable for everyone with whom you may do business.