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 California, a Limited Liability Company (LLC) is a flexible business entity that provides limited liability protection to its owners, known as members. The California Corporations Code governs the formation, operation, and dissolution of LLCs in the state. California allows LLCs to have one or more members, and there are no restrictions on the residency or citizenship of the members, meaning they can be individuals, corporations, other LLCs, or foreign entities. Single-member LLCs are also permitted. However, certain types of businesses, such as banks and insurance companies, may not form an LLC in California. Members of an LLC in California should also be aware of federal tax regulations, as LLCs can choose to be taxed as a corporation, partnership, or as part of the owner's tax return (a 'disregarded entity'). Additionally, foreign LLCs that wish to do business in California must register with the California Secretary of State and comply with state regulations. It is advisable for individuals looking to form an LLC in California to consult with an attorney to ensure compliance with all state-specific requirements and to understand the implications of federal tax laws on their business.