You must assign a member (owner) of your LLC as the responsible party. A member is an individual who has an ownership percentage assigned to them.
This is mandatory for taxation purposes. The LLC taxation is based on the sole member's income, which means that appointing a third party individual as the responsible party may sound like you are trying to avoid tax liability.
In a Multi-Member LLC, the EIN Responsible Party must be one of the LLC Members. Although any LLC Member can be listed, the person listed will take on the responsibility of making sure the LLC’s taxes are handled properly.
If you have a manager on your LLC who is NOT a Member, then they can’t be the Responsible Party.
Please notice Firstbase.io does not provide Manager-Managed LLC Operating Agreements!
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