As the owner of an LLC, you can distribute shares of stock in your company and designate management positions. Just note that in doing so, additional checks and balances are put in place that may make the management of your LLC more complicated in terms of distributing profits, accounting practices and business management! Know that LLCs have a very flexible ownership structure, not limited to any particular number of members, whose total number of shares must equal 100%.
What is My Title as an LLC Owner?
It is mandatory to declare a title for yourself upon registering for an LLC. You should consider yourself to be the “President,” the standard title for an LLC owner. You may also tag on additional titles, such as “President and CEO” or “corporate counsel.” These titles are all determined and defined at your own discretion, and your proficiencies.
How Do I Manage My LLC’s Members?
As the owner of an LLC, you can either be the sole member of the LLC, or, you can designate officers (executives and other key players) of whom will take part ownership. Their individual roles are defined by you, and should be stated in your operating agreement.
How Many Stockholders can my LLC Have, and Who Can They Be?
The number of stockholders for an LLC is not limited as it is with a corporation. Additionally, your LLC stockholders do not need to be US citizens or residents. These members are not limited to other individuals, but my also include corporations, other LLCs, or trusts.
Distributing Profits to Shareholders
While LLCs enjoy freedom from double-taxation, one attribute can be potentially seen as a disadvantage of an LLC: all profits are automatically included in each members’ income.
What About Losses?
If you have other members within your LLC, they can deduct your company’s operating losses against their regular income, up to the extent permissible by state law.