What are LLC Members vs. Owners and the Related Tax Implications for Each?

In an LLC, the owners of the Limited Liability Company are referred to as “Members” (similar to owners in a corporation being referred to as shareholders).

Unless the Members elect differently, income and losses from the Limited Liability Company are passed through directly to the Members, who report these figures on their personal tax returns (as if the company was being treated as a Partnership).

The income and losses are passed through to the Members in direct proportion to the ownership percentage held by each Member.

Get details on Standard Legal’s Limited Liability Company legal forms software here.