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 Virginia, 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. The Virginia State Corporation Commission (SCC) oversees the formation and regulation of LLCs. Virginia allows LLCs to have one or more members, and there are no restrictions on the residency or nature of these members—they can be individuals, corporations, other LLCs, or foreign entities. Single-member LLCs are also permitted. However, certain types of businesses, such as banks and insurance companies, may not form an LLC in Virginia. Those interested in forming an LLC in Virginia should consult the Virginia Limited Liability Company Act for specific state statutes and consider federal tax regulations, as they may affect the structure and operation of the LLC. Additionally, foreign LLCs that wish to conduct business in Virginia must register with the SCC and comply with state requirements.