The LCRM Best Practices guide advises against creating any membership levels in LCRM. How should memberships be used in this case?
The membership levels should be created in Luminate, which will sync to LCRM. The reason it isn't recommended that they be created in LCRM is because membership data flows one way, LO > LCRM. Creating membership levels in LCRM would not flow to LO and would actually cause sync issues.