{"id":4896,"date":"2021-09-10T17:17:04","date_gmt":"2021-09-10T22:17:04","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/what-are-the-different-types-of-llc.html"},"modified":"2025-10-20T14:05:00","modified_gmt":"2025-10-20T19:05:00","slug":"what-are-the-different-types-of-llc","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-are-the-different-types-of-llc.html","title":{"rendered":"What Are the Different Types of LLC?"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">What Are the Different Types of LLC?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/tim-kelly-j-d\/\">Tim Kelly, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last updated\n        <time>\n                            October 20, 2025\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>A <span data-term-id=\"54222038\">limited liability company<\/span> (LLC) is a legal <span data-term-id=\"54222045\">business entity<\/span> that offers owners <span data-term-id=\"54222043\">personal liability<\/span> protection from <span data-term-id=\"54222047\">business activities<\/span> and flexible tax options. However, there are many types of LLCs to choose from, including a <span data-term-id=\"54222080\">single-member LLC<\/span>, <span data-term-id=\"54222083\">multi-member LLC<\/span>, <span data-term-id=\"54222071\">professional <\/span><span data-term-id=\"54222038\">limited liability company<\/span> (<span data-term-id=\"54222072\">PLLC<\/span>), and an anonymous LLC.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<p>A <span data-term-id=\"54222080\">single-member LLC<\/span> (SMLLC) has one owner, while a <span data-term-id=\"54222083\">multi-member LLC<\/span> (MMLLC) has more than one owner. A <span data-term-id=\"54222093\">Professional LLC<\/span> (<span data-term-id=\"54222072\">PLLC<\/span>) is reserved for licensed professionals such as doctors, lawyers, and accountants.<\/p>\n<p>The <span data-term-id=\"54222088\">different types of LLCs<\/span> are:<\/p>\n<ul>\n<li>\n<p><span data-term-id=\"54222080\">Single-member LLCs<\/span><\/p>\n<\/li>\n<li>\n<p><span data-term-id=\"54222083\">Multi-member LLCs<\/span><\/p>\n<\/li>\n<li>\n<p>Member-managed LLCs<\/p>\n<\/li>\n<li>\n<p>Manager-managed LLCs<\/p>\n<\/li>\n<li>\n<p><span data-term-id=\"54222071\">Professional <\/span><span data-term-id=\"54222038\">limited liability companies<\/span> (<span data-term-id=\"54222072\">PLLCs<\/span>)<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li>\n<p>L3C companies<\/p>\n<\/li>\n<li>\n<p><span data-term-id=\"54222081\">Series LLCs<\/span> (only available in some states)<\/p>\n<\/li>\n<li>\n<p>Restricted LLCs (only available in Nevada)<\/p>\n<\/li>\n<li>\n<p>Anonymous LLCs (only available in <span data-term-id=\"54222092\">Delaware<\/span>, Nevada, New Mexico, and Wyoming)<\/p>\n<\/li>\n<\/ul>\n<p>You may have heard about <span data-term-id=\"54222057\">domestic LLCs<\/span> and <span data-term-id=\"54222066\">foreign LLCs<\/span>. A <span data-term-id=\"54222057\">domestic LLC<\/span> is created in the state where the business operates. A <span data-term-id=\"54222066\">foreign LLC<\/span> is formed in another state. This FindLaw article will describe the various types of LLCs, their uses, and how they are taxed.<\/p>\n<p><strong>Need help with LLC formation? <a class=\"in-cell-link\" href=\"https:\/\/www.findlaw.com\/forms\/business-formation.html\" target=\"_blank\" rel=\"noopener\">Our trusted partner LegalZoom makes it easy\u2014packages start at $0 + state filing fees.<\/a><\/strong><\/p>\n<h2>Why LLCs Are a Popular Choice<\/h2>\n<p>An LLC is a reliable choice for new <span data-term-id=\"54222067\">business owners<\/span> and startups because it limits the risk of an owner\u2019s <span data-term-id=\"54222051\">personal assets<\/span> being seized to pay the debts and obligations of the company.<\/p>\n<p>Additionally, owners can elect a pass-through <span data-term-id=\"54222078\">tax status<\/span> as a <span data-term-id=\"54222058\">disregarded entity<\/span>. That means any business profits bypass taxation at the corporate level and are assessed entirely on an owner\u2019s <span data-term-id=\"54222061\">personal income<\/span> tax return. This avoids the double taxation issue common with <a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115291\/26746?subId1=what-are-the-different-types-of-llc-%20wct2411200139dh3s&amp;auto-aff-c-corp\" target=\"_blank\">corporations<\/a> that choose C corporation (<span data-term-id=\"54222059\">C-corp<\/span>) <span data-term-id=\"54222078\">tax status<\/span>.<\/p>\n<p>LLCs are easy to organize and maintain if you register the business with the state, pay the renewal fees, and follow the required formalities. Still, LLCs have many facets, and not all of them are apparent at first glance. LLCs come in various types, which can vary from state to state. Knowing about these <a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=what-are-the-different-types-of-llc-%20wct2411200133ol6y&amp;auto-aff-llc\" target=\"_blank\">LLC<\/a> types and where they are available can help you decide which is right for your business.<\/p>\n<h2>Understanding <span data-term-id=\"54222088\">Different Types of LLCs<\/span><\/h2>\n<p>You might think LLCs seem straightforward. However, the many intricacies of business have necessitated the creation of <span data-term-id=\"54222088\">different types of LLCs<\/span> over time.<\/p>\n<p>LLCs are governed by the state laws in which they are organized. Organizing an LLC means registering the business with the state\u2019s governmental business authority (typically a <span data-term-id=\"54222063\">secretary of state<\/span>). This process includes\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/making-llc-operating-agreements.html\">drafting an <span data-term-id=\"54222052\">operating agreement<\/span><\/a>\u00a0between the owners and\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc-writing-and-filing-the-articles-of-organization.html\">filing <span data-term-id=\"54222041\">articles of organization<\/span> with the state<\/a>. Once the LLC is created, the government will view it as a separate <span data-term-id=\"54222044\">legal entity<\/span> from its owner. With an LLC, your <span data-term-id=\"54222051\">personal assets<\/span> are protected if the LLC has debts or faces a lawsuit.<\/p>\n<p>A critical point in organizing your company will be choosing what kind of <a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=what-are-the-different-types-of-llc-%20wct241120013qshgn&amp;auto-aff-llc\" target=\"_blank\">LLC<\/a> your business will be. For an important decision like this, you must research what types of LLCs are offered in the state where you plan to organize.<\/p>\n<h2><span data-term-id=\"54222080\">Single-Member LLCs<\/span><\/h2>\n<p><span data-term-id=\"54222080\">Single-member LLCs<\/span> are recognized in every state and are the most common type of LLC. Here, the word &#8220;member&#8221; is a stand-in for &#8220;owner.&#8221; <span data-term-id=\"54222080\">Single-member LLCs<\/span> have an individual owner. The Internal Revenue Service (<span data-term-id=\"54222040\">IRS<\/span>) treats them\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/sole-proprietorships.html\">as <span data-term-id=\"54222042\">sole proprietorships<\/span><\/a>\u00a0for <span data-term-id=\"54222077\">tax purposes<\/span>. Many <span data-term-id=\"54222048\">sole proprietors<\/span> become <span data-term-id=\"54222080\">single-member LLCs<\/span> for the <span data-term-id=\"54222064\">limited liability protection<\/span> and to report net income and profits on their <span data-term-id=\"54222054\">personal tax returns<\/span>.<\/p>\n<h2><span data-term-id=\"54222083\">Multi-Member LLCs<\/span><\/h2>\n<p><span data-term-id=\"54222083\">Multi-member LLCs<\/span> are simply LLCs with multiple owners. <span data-term-id=\"54222083\">Multi-member LLCs<\/span> have an advantage over limited partnerships (LPs) in that all members enjoy <span data-term-id=\"54222064\">limited liability protections<\/span>. In a LP, the <span data-term-id=\"54222086\">general partner<\/span> has unlimited liability, and only <span data-term-id=\"54222055\">limited partners<\/span> have liability limited to their investment. <span data-term-id=\"54222069\">Entrepreneurs<\/span> with a limited partnership may want to change their structure to a <span data-term-id=\"54222083\">multi-member LLC<\/span>.<\/p>\n<p>Members each have the option to decide how they want to pay taxes on their share of the business\u2019s profits.<\/p>\n<h2>Member-Managed LLCs<\/h2>\n<p>This is an LLC that the members or owners of the company manage. The decision of whether to be member-managed or manager-managed is made when the LLC is organized. Of the two, member-managed LLCs are more common in the United States.<\/p>\n<h2>Manager-Managed LLCs<\/h2>\n<p>In manager-managed LLCs, the members decide on managers and ascribe responsibilities and duties. Managers are named in the <span data-term-id=\"54222052\">operating agreement<\/span>, which the owners then sign. Owners can be managers. Any owners who aren\u2019t also managers are not required to partake in the management of the business if they do not wish to.<\/p>\n<h2><span data-term-id=\"54222072\">PLLCs<\/span><\/h2>\n<p><span data-term-id=\"54222071\">Professional <\/span><span data-term-id=\"54222038\">limited liability companies<\/span> or <span data-term-id=\"54222072\">PLLCs<\/span> are for industries that require professional licensure. They are a typical structure for accountants, doctors, and lawyers. <span data-term-id=\"54222072\">PLLCs<\/span> ensure that owners are not legally responsible for the malpractice of other owners.<\/p>\n<p>Requirements for <span data-term-id=\"54222072\">PLLCs<\/span> can be different from state to state. If you\u2019re an owner in an industry requiring state licensure, it\u2019s best to consult your state\u2019s governmental business authority to determine what\u2019s needed.<\/p>\n<h2>L3C Companies<\/h2>\n<p>A low-profit <span data-term-id=\"54222038\">limited liability company<\/span> or L3C is a for-profit entity formed for humanitarian efforts. L3Cs are often chosen for their <span data-term-id=\"54222094\">pass-through taxation<\/span> and their similarity to non-profits. However, the for-profit pursuit must come after the primary charitable purpose.<\/p>\n<h2><span data-term-id=\"54222081\">Series LLCs<\/span><\/h2>\n<p>A <span data-term-id=\"54222081\">Series LLC<\/span> is a structure that allows for many LLCs under one LLC umbrella. The parent LLC can take the company\u2019s debts and obligations and attribute them to smaller units within the LLC, called series. Each smaller LLC has its own members, managers, and company assets.<\/p>\n<p>Suppose that a <span data-term-id=\"54222081\">series LLC<\/span> has designated its debts and obligations to you, an owner of the company. In this circumstance, these debts and obligations are your responsibility and can be enforced if commitments are not met. It can often be a big responsibility for designated units of a <span data-term-id=\"54222081\">series LLC<\/span>.<\/p>\n<p>This type of LLC is currently available in Alabama, Arkansas, <span data-term-id=\"54222092\">Delaware<\/span>, the District of Columbia, Illinois, Indiana, Iowa, Kansas, Missouri, Montana, Nevada, <span data-term-id=\"54222091\">North Dakota<\/span>, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming. Each state offers different protections.<\/p>\n<h2>Restricted LLCs<\/h2>\n<p>Restricted LLCs work differently for <span data-term-id=\"54222067\">business owners<\/span> than more traditional formats. That\u2019s because owners have a 10-year waiting period from organizing before they can start receiving business <span data-term-id=\"54222075\">distributions<\/span>. Restricted LLCs can be used to manage and transfer family assets or <span data-term-id=\"54222090\">real estate<\/span> from one generation to another, deferring state and <span data-term-id=\"54222076\">federal income taxes<\/span>.<\/p>\n<p>Restricted LLCs are only available in Nevada.<\/p>\n<h2>Anonymous LLCs<\/h2>\n<p>Anonymous LLCs are for owners who want to keep their company\u2019s details private. Here, information access is restricted, so the public cannot obtain details on ownership and structure.<\/p>\n<p>Anonymous LLCs are currently only available in <span data-term-id=\"54222092\">Delaware<\/span>, Nevada, New Mexico, and Wyoming<\/p>\n<p>When filing your <span data-term-id=\"54222074\">LLC business<\/span> with the state, you must indicate on the <span data-term-id=\"54222065\">formation document<\/span> what type of LLC you want to organize. You may also have to note the <span data-term-id=\"54222085\">management structure<\/span>.<\/p>\n<h2>Key Takeaways<\/h2>\n<ul>\n<li>\n<p>LLCs limit <span data-term-id=\"54222051\">personal asset<\/span> risk while affording owners various tax options, such as avoiding a corporate tax by electing an <span data-term-id=\"54222073\">S corporation<\/span> (<span data-term-id=\"54222050\">S-corp<\/span>) <span data-term-id=\"54222078\">tax status<\/span>.<\/p>\n<\/li>\n<li>\n<p>The diverse needs and goals of LLC owners have necessitated the creation of <span data-term-id=\"54222088\">different types of LLCs<\/span>.<\/p>\n<\/li>\n<li>\n<p>LLCs all have similar characteristics (such as limited liability and <span data-term-id=\"54222094\">pass-through taxation<\/span>) but come in all shapes and sizes.<\/p>\n<\/li>\n<li>\n<p>Some LLC types are only available in certain states, so check with your state\u2019s governmental business authority (such as the <span data-term-id=\"54222063\">secretary of state<\/span>) to determine what\u2019s available to you.<\/p>\n<\/li>\n<\/ul>\n<h2>Need Help Deciding Which Type of LLC to Choose?<\/h2>\n<p>There are many <span data-term-id=\"54222060\">types of businesses<\/span> with different needs. Choosing the proper <span data-term-id=\"54222039\">business structure<\/span> is an essential step in forming an LLC. The laws applying to LLCs differ depending on state law. While this affords owners more options, it often means doing much research. It is best to contact<a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=dcta\" target=\"_blank\" rel=\"noopener\"> a local <span data-term-id=\"54222070\">small business<\/span> attorney<\/a> to learn more about LLCs.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" 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