Lisa and the Law

Members and Managers of LLCs: The importance of using the proper terminology

Limited Liability Companies (“LLCs”) are owned by members and most times (and in my opinion should be) operated by managers. These terms are not super sexy and the term “member” seems like you are in a club. However, if you do not use them when signing legal documents, you may lose the personal limited liability protection you are afforded by law. Sign all legal documents (leases or other contracts), using your proper title. If you want to call yourself something different on marketing materials (like business cards), perhaps use Principal, Founder, Owner for the term “member” and CEO or CFO for the term “manager”. Do NOT use President, Vice President, Secretary of Treasurer in lieu of the term “manager” as these are titled only used for corporations in the Arizona statutes.