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 Kentucky, a Limited Liability Company (LLC) is a popular business structure due to its flexibility and protection for its members against personal liabilities. The Kentucky Revised Statutes (KRS) Chapter 275 governs the formation, operation, and dissolution of LLCs in the state. Kentucky does not restrict ownership, so members can include individuals, corporations, other LLCs, and foreign entities, with no limit on the number of members. Single-member LLCs are also permitted in Kentucky. Certain businesses, such as banks and insurance companies, may not be structured as LLCs in Kentucky. Those interested in forming an LLC in Kentucky must file Articles of Organization with the Kentucky Secretary of State and comply with any other state-specific requirements, such as naming conventions and registered agent designation. 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'). It is advisable to consult with an attorney to navigate the specific legal requirements and to ensure compliance with both state and federal laws.