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 Ohio, 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 for business debts. Ohio state statutes allow for the formation of LLCs by filing the necessary documents with the Ohio Secretary of State. There are no restrictions on the ownership of an Ohio LLC, which means that individuals, corporations, other LLCs, and foreign entities can be members. Additionally, Ohio permits the creation of single-member LLCs. While most businesses can choose to operate as an LLC, certain entities like banks and insurance companies may be prohibited from doing so under Ohio law. Those interested in forming an LLC in Ohio should consult the relevant state statutes for specific regulations and also consider federal tax implications, as the IRS has distinct rules for the taxation of LLCs. Foreign LLCs that wish to do business in Ohio are subject to additional regulations and must register with the state.