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 Tennessee, 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 Tennessee Revised Limited Liability Company Act governs the formation, operation, and dissolution of LLCs in the state. Tennessee 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 Tennessee. However, certain types of businesses, such as banks and insurance companies, may not be formed as LLCs in Tennessee. Those interested in forming an LLC in Tennessee should comply with specific state requirements, such as filing the Articles of Organization with the Tennessee Secretary of State and paying the necessary fees. Additionally, while LLCs enjoy pass-through taxation at the federal level, they must also adhere to any relevant state tax regulations. Foreign LLCs that wish to do business in Tennessee are required to register with the state and may be subject to additional rules.