A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, so you should read the relevant state statutes if you are interested in forming an LLC.

Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit single-member LLCs—those having only one owner.

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for additional information. There are special rules for foreign LLCs.

In Alabama, a Limited Liability Company (LLC) is a popular business structure that is governed by state statutes, specifically the Alabama Limited Liability Company Law. This law allows for the formation of LLCs by filing the necessary documents with the Alabama Secretary of State. LLCs in Alabama can have one or more members, and there are no restrictions on the types of entities that can be members, which means individuals, corporations, other LLCs, and foreign entities are all permitted to be LLC members. Alabama does not set a limit on the maximum number of members an LLC can have. However, certain types of businesses, such as banks and insurance companies, may not be eligible to operate as LLCs in Alabama. It is important for anyone interested in forming an LLC in Alabama to review both state statutes and federal tax regulations, as there may be specific requirements and rules that apply, especially for foreign LLCs operating within the state.