Multi Member LLC

A Multi-Member LLC is an LLC with two or more owners. Each member has an ownership percentage, which may or may not be equal. By default, the IRS taxes multi-member LLCs as partnerships, with profits and losses passing through to the members’ personal tax returns. Members can also elect S-Corp taxation if it’s advantageous. A detailed operating agreement is especially important for multi-member LLCs to prevent disputes and clarify responsibilities.