Final answer:
The ownership interest in an LLC is referred to as a "membership interest." Unlike corporations with shares of stock, LLC members have membership interest that signifies their portion of ownership, rights to profits, and governance in some cases.
Step-by-step explanation:
A member's ownership interest in an LLC (Limited Liability Company) is called a "membership interest" or "member's interest." This interest represents the member's share of ownership in the LLC, and can include rights to the company's profits, voting rights, and the right to a share of the assets if the company dissolves. The term you are likely looking for is not listed in the options provided. Unlike corporations where ownership is represented by shares of stock, in an LLC, the ownership is through these membership interests, which includes both economic rights and sometimes governance rights if the LLC is member-managed.
LLCs offer flexibility as they can be managed by members or managers. They provide limited liability protection for their members, similar to the protection shareholders receive in a corporation. However, LLCs do not issue stock; therefore, there are no shareholders, but rather members who have invested in the company's equity. The distribution of profits in an LLC, often proportional to a member's interest, is not considered a dividend as it would be in a corporation; instead, it's often referred to simply as distributions.