Similarities of a single-member LLC and a multiple-member LLC

Being the same type of limited liability company – two different types of companies with similar characteristics:

• Upon establishment, single-member LLCs and multiple-member LLCs have a legal capacity to conduct commercial trade or any activity allowed by law for companies to turn a profit.
• When Individuals participate in any kind of stated company, member liability for the enterprise’s debts and other liabilities are equal to the amount of capital that the member contributed to the enterprise.
• Both types of companies are not allowed to issue shares unless they convert into joint-stock companies; however, they may issue bonds.
• Procedures for registration of enterprise establishment, bankruptcy, and dissolution are similar.
• Members are allowed to buy, sell, and transfer their shares in the company which follows the regulated bylaws.  
• Both types of companies can increase or decrease charter capital.

Some of the differences between a single-member LLC and a multiple-member LLC

	SINGLE-MEMBER LIMITED LIABILITY COMPANIES	MULTI-MEMBER LIMITED LIABILITY COMPANIES
Member number	– May consist of organizations or individuals – Only one member	– May consist of organizations or individuals – From 2 to 50 members
Increase, Decrease charter	– Increase charter capital: + Owner contributes capital + Raises capital from other parties/individuals – Decrease charter capital + Part of the contributed capital is returned to the company’s owner; + Charter capital is not fully and punctually contributed by the owner.	– Increase charter capital: + Increase in the members’ capital contribution + Receipt of capital contribution from new members. – Decrease charter capital + The company returns part of the contributed capital to the members in proportion to their holdings in the company; + The company repurchases the members’ stakes + Charter capital is not fully and punctually contributed by the members.
Capital transfer	– Owner has the right to transfer part or all of the company’s charter capital to another organization or individual.	– A member of the company is entitled to transfer part or all of their stake to other organizations or individuals.
Board of Members / Board of Directors / General Meetings of Shareholders	– Organizational model owned by an individual: A President and a Director/General Director – Organizational model owned by an organization: One of the two models (shown below) will apply: + A company with a President and the Director/General Director; +  A company with a Board of Members and the Director/General Director.	– Organizational model: Board of Members, President of the Board of Members, Director/General Director.   – The Board of Members is the supreme governing body of the company; – Convenes at least once a year
Legal representative	– The person holding the title of President of the Board of Members, the company’s President, or Director/General Director. – Unless otherwise prescribed by the company’s charter, the President of the company or President of the Board of Members shall be the company’s legal representative.	– The person holding the title of President of the Board of Members, Director/General Director. – Unless otherwise prescribed by the company’s charter, the President of the Board of Members shall be the company’s legal representative.

The number of members is thus the primary distinction between single-member and multiple-member limited liability companies. Individuals or organizations should form a single-member limited liability company if they want to be the sole owners, and a multiple-member limited liability company if they want to raise more capital.