Types of LLC: Single, Multi-Member, Series and More

By number of owners

Type	Default federal income tax	Notes
Single-member LLC	Disregarded as separate from its owner	Still a separate entity for employment tax
Multi-member LLC	Classified as a partnership	Needs an EIN and an operating agreement among members
Either, by election	Taxed as a corporation (Form 8832) or as an S corporation (Form 2553)	An election changes tax treatment, not the state entity

The IRS explains these defaults on its pages for single member LLCs and for LLCs in general. A corporate election made with Form 8832 generally limits changing classification again for 60 months, with exceptions, according to the form instructions. Ask a CPA before electing.

By management

Member-managed: the owners run the business directly.
Manager-managed: the owners appoint one or more managers, who can be owners or outsiders. The roles are set in the operating agreement.

Domestic and foreign LLC

A domestic LLC is formed in a state. The same LLC is a foreign LLC in any other state where it registers to do business. "Foreign" here means "from another state", not "from another country". States decide what counts as transacting business, and the Texas Secretary of State, for example, says it will not give a legal opinion on whether a particular company must register. See best state for an LLC.

Series LLC

A series LLC lets one LLC set up internal "series", each able to have its own assets, obligations and rights. Only some states allow it, and the conditions for keeping liabilities separate are written into each statute. Examples of statutes we read:

Delaware: 6 Del. C. section 18-215
Texas: Business Organizations Code sections 101.601 and following, described by the Texas Secretary of State
Illinois: 805 ILCS 180/37-40
Wyoming: W.S. 17-29-211, with a Secretary of State filing form
Nevada: NRS Chapter 86, section 86.296

This is not a complete list, and states change their laws. Series LLCs raise questions about how a different state treats a series, so talk to a licensed attorney before relying on one. We do not file series LLCs.

Professional LLC (PLLC)

Some states let licensed professionals, such as doctors or lawyers, form a professional LLC. Rules and the professions covered differ by state, and licensing boards set conditions. Ask your state licensing board and a licensed attorney. We do not form professional LLCs.

Other labels you will see

Terms such as "anonymous LLC" or "low-profit LLC" are used in marketing and in some state statutes. What they mean, and whether your state offers them, depends on that state. Check the Secretary of State site of the state you are considering.

Next step

Ready to form yours? Start your LLC with Coral Filings and we handle the state filing, the registered agent and the EIN request. Want to compare filing fees first? Open the state fees hub for all 50 states and D.C.

Frequently asked questions

What is the difference between a single-member and a multi-member LLC?

By default the IRS disregards a one-member LLC for income tax, while a domestic LLC with two or more members is classified as a partnership.

Is a foreign LLC an LLC from another country?

Not in this context. A foreign LLC is one formed in a different state that registers to do business in your state.

Which states allow a series LLC?

Several do, including Delaware, Texas, Illinois, Wyoming and Nevada, according to their statutes. The list changes, so read your state's current law.

Does Coral Filings form series or professional LLCs?

No. We form standard LLCs and corporations.

Can I change how my LLC is taxed later?

Often yes, with Form 8832 or Form 2553, within IRS rules and deadlines. Ask a CPA first.

This page is general information, not legal or tax advice. For your specific situation, talk to a licensed attorney or CPA.