A limited liability company is a legal structure that shields its owner, or members, from personal liability and, often, if applicable, professional liability. An LLC limits any losses to the owner's investment in the LLC. Owners can run an LLC or can designate an outside professional manager. LLCs can have vice presidents. "Vice president" may be the title given to one or more owners involved in the business, one of the professional managers, or one or more employees.
Vice President: Employee
A vice president is a member of a company's management team responsible for a department or group. In a corporation, the vice president is typically seen as a deputy to the president or chief operating officer. Therefore, your LLC can hire or promote one or more individuals into the vice president position as a regular employee as the need arises. For example, your LLC may have a VP of sales, operations or finance.
Vice President: Managing Member
Because the legal name for any individual or business that owns a stake in your LLC is "member," "managing member” is the legal name for the member who officially leads your LLC. When your LLC opts to have one of the owners act as its chief officer, that person is considered the LLC’s manager. When you file your articles of organization, you must specify this person's name and address. The managing member of an LLC is equivalent to a president or CEO of a corporation, but if you have multiple managing members, you can opt to give one or more individuals the title of "vice president" instead.
Vice President: Manager
Your LLC may choose instead to have all members act as owners with little or no involvement in the LLC's management. If so, then your LLC must designate and hire someone to serve as its chief officer or, in LLC legal terms, its manager. The person or people in this role will be the professional managers. When you organize your LLC, you must indicate that an external manager will oversee your LLC's operations and specify that person's or those people's names in the articles. You can choose the title "vice president" for one or more of the managers.
Caveat on Vice President
If your LLC uses the title "vice president" to refer to the role of "managing member" or "manager, it will need to take a few steps. First, all members must agree to the use of the "vice president" title in this capacity. Then your LLC must outline what the title of “vice president” means and what duties the title carries. Include this description in your LLC's operating agreement. If you did not, however, any document that all members sign is sufficient.
Tiffany C. Wright has been writing since 2007. She is a business owner, interim CEO and author of "Solving the Capital Equation: Financing Solutions for Small Businesses." Wright has helped companies obtain more than $31 million in financing. She holds a master's degree in finance and entrepreneurial management from the Wharton School of the University of Pennsylvania.