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 Michigan, a Limited Liability Company (LLC) is a popular business structure that is governed by state statutes, specifically the Michigan Limited Liability Company Act. This act outlines the formation, operation, and dissolution of LLCs within the state. Michigan does not restrict ownership of an LLC, 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 Michigan. While most businesses can choose to operate as an LLC, certain regulated industries, such as banks and insurance companies, may be prohibited from forming an LLC under Michigan law. Those interested in forming an LLC in Michigan should consult the relevant state statutes for specific requirements and also consider federal tax regulations, as they may affect the classification and taxation of the LLC. Additionally, foreign LLCs that wish to do business in Michigan must comply with state requirements for foreign entities, which may include registering with the state and appointing a registered agent within Michigan.