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 Maryland, 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. Maryland law allows for the formation of LLCs by filing the necessary documents with the Maryland Department of Assessments and Taxation. There are no restrictions on the ownership of an LLC in Maryland; individuals, corporations, other LLCs, and foreign entities can all be members. Additionally, Maryland permits the creation of single-member LLCs. While most businesses can elect to be an LLC, certain entities like banks and insurance companies may be prohibited from forming an LLC under Maryland law. Prospective LLC members should consult state statutes for specific regulations and also consider federal tax implications, as the IRS has distinct rules for the taxation of LLCs. It's advisable to consult with an attorney to navigate the formation process and ensure compliance with all relevant laws.