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 Connecticut (CT), a Limited Liability Company (LLC) is a popular business structure due to its flexibility and protection for its owners, known as members, from personal liability. The Connecticut Limited Liability Company Act governs the formation and operation of LLCs within the state. Connecticut allows LLCs to have one or more members, and there are no restrictions on the type of entities that can be members, which means individuals, corporations, other LLCs, and foreign entities can all be members of a Connecticut LLC. However, certain types of businesses, such as banks and insurance companies, may not be formed as LLCs in Connecticut. When forming an LLC, one must file a Certificate of Organization with the Connecticut Secretary of State and comply with any other state-specific requirements, such as appointing a registered agent. Additionally, while Connecticut state law provides the basic framework for the creation and operation of LLCs, it is important to consult federal tax regulations and any other relevant laws to ensure compliance across all levels of government, especially if the LLC will be conducting business across state lines or as a foreign LLC.