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 Colorado, 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 Colorado Limited Liability Company Act governs the formation, operation, and dissolution of LLCs in the state. Colorado does not restrict ownership, so members can include individuals, corporations, other LLCs, and foreign entities. There is no limit to the number of members an LLC can have, and Colorado allows for the creation of single-member LLCs. Certain businesses, such as banks and insurance companies, may not be formed as LLCs in Colorado. Those interested in forming an LLC in Colorado should file Articles of Organization with the Colorado Secretary of State and comply with any other state-specific requirements, such as creating an operating agreement and obtaining necessary business licenses. Additionally, LLCs must consider federal tax regulations, as they can choose to be taxed as a corporation, partnership, or as part of the owner's tax return (a 'disregarded entity'). Foreign LLCs that wish to do business in Colorado must register with the state and adhere to specific regulations applicable to foreign business entities.