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 Illinois, a Limited Liability Company (LLC) is a popular business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. The Illinois Limited Liability Company Act governs the formation, operation, and dissolution of LLCs in the state. Illinois allows LLCs to be owned by one or more members, which can include individuals, corporations, other LLCs, and foreign entities. There is no statutory limit on the number of members an LLC can have, and Illinois permits the formation of single-member LLCs. Certain businesses, such as banks and insurance companies, may be prohibited from forming an LLC in Illinois. It is important for anyone interested in forming an LLC in Illinois to review both state statutes and federal tax regulations, as there may be specific requirements and implications for taxation, as well as additional rules that apply to foreign LLCs operating in the state.