Limited liability companies (LLCs) are popular because owners have limited personal liabilities for the debts and actions of the LLC. This is similar to corporations, but LLCs face fewer complexities and the additional taxation levied on corporations. LLCs are more like a sole proprietorship or general partnership, providing management flexibility and the benefit of pass-through taxation. Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs, and foreign entities. There is no minimum or maximum number of members. Most states also permit single-member LLCs and LLCs jointly owned by spouses. A few types of businesses cannot be LLCs, such as banks and insurance companies.
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