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 Arkansas, a Limited Liability Company (LLC) is a popular business structure due to its flexibility and protection for its members against personal liability for business debts. The Arkansas LLC Act governs the formation and operation of LLCs within the state. Members can include individuals, corporations, other LLCs, and foreign entities, with no restrictions on the number of members, allowing for both single-member and multi-member LLCs. However, certain types of businesses, such as banks and insurance companies, may not be eligible to form an LLC in Arkansas. Those interested in forming an LLC in Arkansas should file Articles of Organization with the Arkansas Secretary of State and comply with any other state-specific requirements, such as appointing a registered agent and creating an operating agreement. Additionally, LLCs must consider federal tax regulations, as they can choose to be taxed as a sole proprietorship, partnership, or corporation. Foreign LLCs that wish to do business in Arkansas are required to register with the state and adhere to specific rules applicable to them.