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If you own all or part of an LLC, you are known as a member. LLCs can have one member or many members. In some LLCs, the business is operated, or managed by its members. In other LLCs, there are at least some members who are not actively involved in running the business. Those LLCs are run by managers.
The term member refers to the individual(s) or entity(ies) holding a membership interest in a limited liability company. The members are the owners of an LLC, like shareholders are the owners of a corporation. Members do not own the LLCs property.
Typically, stock is not the term used for LLC ownership shares. In most LLCs, the LLC Agreement designates a certain number of what it calls membership units or member interests and may break them down further into a certain number of Voting Units and Nonvoting Units.
Members usually receive ownership percentages in proportion to their contributions of capital, but LLC members are free to divide up ownership in any way they wish. These contributions and percentage interests are an important part of your operating agreement.
Legally, there are no rules on the number of authorized shares you should issue, Lloyd Mousilli advises. Theres no need for rules because the number, practically speaking, doesnt matter. If you issue 10 million shares, someone who holds 1 million shares owns 10 percent of the company.
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LLCs have no limit on the number of members and the ownership of each member can be entirely different from another member. For example, one member might have 5% ownership in the LLC, whereas another member could have 45% ownership in the LLC.
Step 5: Determine the LLC Ownership A members units in an LLC are referred to in the aggregate as [their] percentage interest. So if an LLC issues 100 units to its members and one member receives 60 units, that members ownership percentage is 60 percent.
Does an LLC have shares? No. Only businesses structured as a corporation issue shares. With a limited liability company, ownership is expressed by percentage and membership units.
The only way a member of an LLC may be removed is by submitting a written notice of withdrawal unless the articles of organization or the operating agreement for the LLC in question details a procedure for members to vote out others.
The business does not pay entity-level taxes. Instead, the company passes profits and losses through to you and the other members. The LLC allocates profits to members based on their ownership percentage or based on a special percentage allocation as agreed upon by the members.

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