Law & Taxation mentor Barbara Weltman responds to the following question from an inc.com user:
What roles do the members of an LLC play? Are they shareholders of the company?

Barbara Weltman responds:
Members of a limited liability company (LLC) can have different roles, but they are owners of the business and have ownership interests in it. They are not referred to as shareholders because only corporations have shareholders.

Whether LLC members participate in the day-to-day management of the business depends on the LLC's Articles of Organization or the operating agreement. Some LLCs may restrict management to "managers," leaving other members as investors. Other LLCs let all members contribute to the daily operations of the business. Consult a lawyer or tax adviser to receive more details on LLCs and how one might work for your particular business.

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Related resources at inc.com:
Limited Liability Companies: How Do They Work?
Choosing between a Corporation and an LLC
Paperwork Required to Set Up an LLC