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Managing member vs business owner

The differences between managing members and business owners can be seen in a few details. Each job has different responsibilities and duties. Additionally, a managing member has an average salary of $92,537, which is higher than the $50,934 average annual salary of a business owner.

The top three skills for a managing member include financial statements, real estate and payroll. The most important skills for a business owner are customer service, payroll, and financial statements.

Managing member vs business owner overview

Managing MemberBusiness Owner
Yearly salary$92,537$50,934
Hourly rate$44.49$24.49
Growth rate6%6%
Number of jobs26,657107,663
Job satisfaction--
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 52%
Average age4744
Years of experience-6

What does a managing member do?

A managing member is an individual who has an ownership interest of a limited liability company (LLC) and is involved in its daily management. Managing members have an authoritative position that allows them to represent the company in contract negotiations and agree to the terms of a binding contract. They can purchase and sell properties owned by the company and can hire or terminate employees. Managing members also receive salaries and are not entitled to share in the profit or loss of the company.

What does a business owner do?

Business owners, also known as Entrepreneurs, are responsible for their company and brand's success. There are many areas of responsibility when you're a business owner, such as in the aspects of planning and budgeting, arranging finances and legal documentation, and even hiring the workforce essential for the business to grow. However, these responsibilities will vary according to how a business owner will uphold them. Moreover, building a business from the ground up requires dedication and a vision and mission for the brand.

Managing member vs business owner salary

Managing members and business owners have different pay scales, as shown below.

Managing MemberBusiness Owner
Average salary$92,537$50,934
Salary rangeBetween $49,000 And $172,000Between $27,000 And $94,000
Highest paying CitySan Jose, CASeattle, WA
Highest paying stateConnecticutWashington
Best paying companyMemorial Sloan Kettering Cancer CenterBD
Best paying industryGovernmentRetail

Differences between managing member and business owner education

There are a few differences between a managing member and a business owner in terms of educational background:

Managing MemberBusiness Owner
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 52%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Managing member vs business owner demographics

Here are the differences between managing members' and business owners' demographics:

Managing MemberBusiness Owner
Average age4744
Gender ratioMale, 69.2% Female, 30.8%Male, 51.4% Female, 48.6%
Race ratioBlack or African American, 7.6% Unknown, 4.7% Hispanic or Latino, 12.7% Asian, 8.9% White, 65.5% American Indian and Alaska Native, 0.7%Black or African American, 6.3% Unknown, 4.3% Hispanic or Latino, 15.5% Asian, 6.4% White, 67.0% American Indian and Alaska Native, 0.5%
LGBT Percentage10%10%

Differences between managing member and business owner duties and responsibilities

Managing member example responsibilities.

  • Founded, develop and manage a playwriting group for NYC playwrights.
  • Manage concurrent projects locate across multiple time zones during daytime and off-hours maintenance windows.
  • Manage marketing and social media marketing activities, as well as company's e-commerce business and daily operations.
  • Form and manage an LLC for the manufacturing, sales, and distribution of an extremely unique line of magnetic jewelry.
  • Manage a portfolio of web assets on a part-time basis including e-commerce, video production services and a San Antonio blog.
  • Manage the day to day operation/financial operations of Medicare certify home health agency.
  • Show more

Business owner example responsibilities.

  • Manage the budget and insure operations run smoothly.
  • Create, own and manage a LLC for grind pet transportation.
  • Establish and manage a beading boutique via the Internet by utilizing Photoshop to post designs on a personal website.
  • Manage sales, customer service, billing, A/P, A/R, vendor relations, negotiations, repairs, and maintenance.
  • Manage end to end business operations including hiring, scheduling visits, conducting customer consultations and performing pet visits.
  • Handle all aspects from A/P to A/R, payroll, ordering and dealing with all distributors and city officials.
  • Show more

Managing member vs business owner skills

Common managing member skills
  • Financial Statements, 14%
  • Real Estate, 11%
  • Payroll, 8%
  • Business Development, 6%
  • Product Development, 5%
  • R, 4%
Common business owner skills
  • Customer Service, 31%
  • Payroll, 12%
  • Financial Statements, 9%
  • Business Plan, 7%
  • Business Model, 3%
  • Real Estate, 2%

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