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Member (of a Limited Liability Company)

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Definition:

A member of a limited liability company (LLC) is an owner of the company. Members in an LLC are equivalent to partners in a partnership.

The members determine how much each member will share in the duties of the business and in the profits and losses of the business. All rights and responsibilities of members are spelled out in the Operating Agreement of the LLC. An LLC can have only one member - a "single member LLC;" almost every state allows single-member LLC's.

The members of the LLC have a limited liability for debts of the business, unless they have personally guaranteed loans or other debts.

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