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 New Jersey, a Limited Liability Company (LLC) is a popular business structure due to its flexibility and protection for its members against personal liability for the debts of the business. The New Jersey LLC Act governs the formation, operation, and dissolution of LLCs in the state. New Jersey does not restrict ownership, so members can include individuals, corporations, other LLCs, and foreign entities. There is no statutory limit on the number of members an LLC can have, and New Jersey allows for the creation of single-member LLCs. Certain businesses, such as banks and insurance companies, may not be formed as LLCs in New Jersey. Those interested in forming an LLC in New Jersey should file a Certificate of Formation with the New Jersey Division of Revenue and Enterprise Services. Additionally, while LLCs enjoy pass-through taxation at the federal level, they must comply with state tax requirements, which may include the payment of an annual fee or tax based on the number of members. Foreign LLCs that wish to do business in New Jersey must register with the state and appoint a registered agent for service of process.