Frequently Asked Questions

Who is permitted to form a legal LLC?

The Revised Uniform Limited Liability Act outlines who can form a legal Limited Liability Company (LLC). According to Section 102 of the Act, the following entities are permitted to form an LLC: individuals, corporations, business trusts, estates and trusts, agencies, partnerships, other LLCs, associations, joint ventures, public corporations, government subdivisions, and any legal or commercial entities. To form an LLC, one or multiple members file articles of organization with the Secretary of State (SOS). The LLC can be a single-member or multiple-member LLC, and it is regulated under state law in the state where it was formed. However, there are certain restrictions for S Corporations (S Corps) and Professional Limited Liability Companies (PLLCs). S Corps, which are a type of tax classification, can be members of an LLC by owning full or partial stock or interest. However, they cannot have more than 100 members, and all members must be state residents and US citizens. PLLCs, on the other hand, are required to only have licensed professionals in the field in which the company plans to offer services as members. Therefore, corporations cannot act as members of a PLLC.