ContractsCounsel Logo
Home Blog Types of LLC

Jump to Section

ContractsCounsel has assisted 270 clients with llcs and maintains a network of 195 business lawyers available daily. These lawyers collectively have 21 reviews to help you choose the best lawyer for your needs.

What are the Different Types of LLC?

LLCs are a popular business entity, and there are various types of LLC you can choose from. For example, a limited liability company or an LLC is a business structure that effectively combines the pass-through taxation advantage while providing liability protection simultaneously.

LLCs are relatively easy to form by contacting LLC lawyers and creating a staunch LLC operating agreement. However, the type of LLC you choose will affect your business protection and federal tax clauses.

Here's a list of the different types of LLC to give you further insight on the subject:

Single-Member LLC

A single-member LLC comprises a single owner without any legal partners. A single-member LLC is a separate legal entity from its owner, for tax purposes, it is generally treated as a disregarded entity by default. However, the owner can choose to have the LLC taxed as a corporation if they prefer.

Furthermore, because this LLC has no employees, its operating agreement is created with minimal clauses to identify its status as a separate entity. Most importantly, single-member LLC owners need to keep their personal and business assets separate for tax purposes.

Multi-Member LLC

Multi-member LLCs are simply LLCs with partners. Whether the LLC has two or more partners, each will have a share percentage in the company depending on their investment. It can also choose to be taxed as a corporation if they prefer.

This percentage should be specified in the LLC's operating agreement to avoid future inconveniences. The IRS treats a multi-member LLC as a business partnership regarding taxation.

Manager-Managed LLC

A manager-managed LLC also comprises more than one member but has a different operating agreement than a multi-member LLC. The members select a manager among themselves or from a third party to oversee the basic operations of the business.

Apart from overseeing everyday operations, the manager will also have the right to make any decisions regarding the company without any input from the other members.

Member-Managed LLC

As the name suggests, a member-managed LLC is the opposite of a manager-managed LLC. In these types of LLC, the members have complete control over the crucial decisions and everyday operations conducted for their business.

However, the share percentage outlined for each member in the operating agreement will decide which member has the final say.

Family LLC

A family LLC consists entirely of family members. Any family member can be a part of this business entity, including blood relatives, adopted children, and spouses.

The state treats these LLCs as regular multi-member LLCs for taxation purposes. The articles of the organization define the controlling members of the LLC. However, the family members typically pick one or two members to manage the business.

Investment LLC

A group of people willing to invest in a particular business entity can form an LLC. An investment LLC combined some characteristics of a corporation and a partnership in terms of taxation and member benefits. The taxation and member benefits will depend on how the LLC is structured and how it chooses to be taxed.

Real Estate LLC

A real estate LLC is a domestic limited liability company devised for investing in real estate.

However, the owner legally remains separate from the properties involved in the LLC. Therefore, in case of a transition to a different owner, rental property deeds won't need to be renewed. Contracts are solely between the property and the tenants without any legal involvement of the LLC owner.

Holding Company LLC

A holding company LLC, also known as an umbrella LLC, is a type of LLC that owns other small businesses. Usually, large business entities use LLC holding companies to divide their subsidiaries into separate legal entities.

Anonymous LLC

Anonymous LLCs are devised to protect the owner's privacy. Currently, only a few states let owners of domestic limited liability companies remain anonymous. While some states have more privacy protection for LLC owners, there are other states that also allow for anonymous ownership. These include Delaware, Nevada, Wyoming, and New Mexico.

Meet some lawyers on our platform

Rene H.

37 projects on CC
CC verified
View Profile

Michael M.

609 projects on CC
CC verified
View Profile

Brian S.

16 projects on CC
CC verified
View Profile

Michael K.

101 projects on CC
CC verified
View Profile

What Is an LLC?

An LLC or limited liability company is an innovative business structure introduced in the US. The structure is designed to protect owners from the responsibilities of business ownership. These include debts, liabilities, and taxes.

Created in 1977, LLCs are mainly hybrid business formats that provide unique characteristics from other business structures.

For example, its limited liability feature makes it similar to a corporation. At the same time, the pass-through taxation system is the main feature of a partnership. Today, there are many types of LLCs operating in the US for business owners to choose from.

Here is an article about choosing the proper business structure to see if LLCs are right for you.

How Many Types of LLCs Are There?

There are many types of LLCs operating under the limited liability legal system. Mainly, LLCs are divided based on their ownership and management.

Meaning an LLC can be either single-member or multi-member in terms of ownership. A sole business owner can create an LLC or make it by multiple owners having their share percentage.

On the other hand, an LLC can be member-managed or manager-managed. This depends on how the owner or owners choose to manage their LLC.

Based on these two main structures, the LLC can belong to other sub-types of LLC. These include family LLCs, holding company LLCs, and real estate LLCs.

Here is an article about the different kinds of LLCs you can work with.

Can an LLC Be an S Corp?

Usually, the terms LLC and S Corps are used alongside each other, while both carry entirely different meanings. For example, an LLC is a type of business entity. On the other hand, an S corp denotes a tax classification.

That's why, in some cases, a company can be both an LLC and an S corp. For example, a business owner can form an LLC but can be taxed as an S corp. In this case, your company will still be taxed under the basic LLC taxation system.

Here's an article about the differences between LLCs and S corps.

Which Types of LLC Are Best for Me?

Choosing the correct option from the multiple types of LLCs can be a tricky task.

You can start by analyzing the main goals of your business and considering the laws of your state. Besides that, you'll also have to consider the members involved.

For example, if you're going for a sole proprietorship, then a single-member LLC is the structure for you. However, if multiple members are involved in your business venture, you should go for multiple-member LLC.

Further, you'll have to discuss with your fellow members about the management technique of your company. In this case, you'll have to choose between member-managed and manager-managed LLCs.

The best way is to get some professional help. If you're wondering how much a lawyer charges for an LLC, here's an article about how to get an LLC to help you out.

How Do I Get an LLC?

Getting an LLC is a straightforward task. However, you'll have to follow some steps to form a proper organization.

  • Choose a Name. Your business’ name goes on to become the face of your company. That's why you should choose a suitable name for marketing purposes and helps you create a positive brand identity.
  • Get a DBA Name. If you want to run your company under a different name, you'll have to register a DBA. Meaning you're doing business under the assumed name.
  • Fill the Articles of Organizations. Next, you will need to file articles of organization according to your state laws. Again, this is a simple document that you can get from your state's business or filing office.
  • Create an Operating Agreement. After filing for an article of organization, you'll need to draft an operating agreement. Here, you'll have to take the different types of LLC into account. For example, if yours is a multiple-member LLC, your contract will specify the ownership percentage of each member.

And that's it. Once you have created your LLC, your state might require you to announce it through various publications or obtain other relevant licenses and permits.

Post a project in ContractsCounsel’s marketplace to get free flat fee bids from lawyers to review and compare. All lawyers in our network are vetted by our team and peer-reviewed by customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Lawyers

Karen S. on ContractsCounsel
View Karen
4.8 (24)
Member Since:
January 31, 2023

Karen S.

Free Consultation
Atlanta, GA
13 Yrs Experience
Licensed in GA
Georgia State University

I'm an attorney available to help small businesses in Georgia get started with initial business set-up, required filings, tax strategies, etc. I'm also available to draft, review, and negotiate contracts. I can draft and file real estate quit claims as well. My experience areas include small business startups, information technology, technology innovation, real estate transactions, taxes, community associations, intellectual property, electrical engineering, the business of video game development, higher education, business requirements definition, technology consulting, program management, and the electric utility industry. I work part-time for a local law firm and part-time in my solo practice. I'm also an adjunct professor at Southern New Hampshire University teaching business innovation and business law. In addition, I'm part owner, legal counsel to, and a board member of a virtual reality video game development company. I am a member of the Georgia Bar Association. Please reach out if you need attorney, documentation or consulting help in any of those areas!

Michael K. on ContractsCounsel
View Michael
5.0 (50)
Member Since:
June 28, 2021

Michael K.

Associate Counsel
Free Consultation
Miami, FL
6 Yrs Experience
Licensed in FL
St. Thomas University School of Law

A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.

Philip M. on ContractsCounsel
View Philip
Member Since:
December 13, 2021
Amy Sue L. on ContractsCounsel
View Amy Sue
Member Since:
January 4, 2022

Amy Sue L.

President, Concierge Legal
Free Consultation
Washington, DC Metropolitan Area
27 Yrs Experience
Licensed in CA, DC, PA, VA
Pepperdine University School of Law

Ms. Leavens is a corporate attorney with 10 years of experience as the General Counsel, Chief Compliance Officer and Corporate Secretary of a Congressionally chartered, non-profit corporation, and more than 20 years of experience as an advisor to executive officers and boards of directors in for-profit and non-profit organizations. She has substantial experience within in-house legal departments managing cross-functional teams comprised of multiple business units and attorneys on large-scale mission critical projects, and within a global law firm as a manager of public and private, domestic and international, multi-party business transactions. She has unique experience implementing government-sponsored business initiatives. Ms. Leavens was honored in 2015 as one of Washington, D.C.’s Top Corporate Counsel by Bisnow and the Association of Corporate Counsel; nominated in 2014 for the Association of Corporate Counsel (WMACCA) Outstanding Chief Legal Officer Award; and the recipient in 2014 of WMACCA’s Community Service Award.

Elizabeth V. on ContractsCounsel
View Elizabeth
Member Since:
January 6, 2022

Elizabeth V.

Corporate Counsel
Free Consultation
Indianapolis, IN
10 Yrs Experience
Licensed in IN
IU McKinney School of Law

Most of my career has been as in-house counsel for technology companies. My responsibilities included managing all vendor/procurement contracts and compliance, customer/partner/reseller contracts and compliance, data security/privacy compliance and incident responses, HR/employment issues, and legal operations. I am very comfortable negotiating Commercial Contracts, Vendor Agreements, and Procurement Contracts for goods, services, and licensing, as well as addressing Employment & Labor, Intellectual Property, and Data Privacy issues and compliance. I specialized and have a certificate in IP in law school and continued to develop in that area as in-house counsel for Interactive Intelligence, Genesys, which are unified communication companies, and KAR Global in the automobile digital services lines of business.

Amos M. on ContractsCounsel
View Amos
Member Since:
January 14, 2022

Amos M.

Free Consultation
Nashville, TN
16 Yrs Experience
Licensed in GA, TN
Mississippi College School of Law

Since 2008, I have worked to assist clients in solving problems and addressing challenges that inevitably arise as a business grows - both anticipated and unexpected. My experience in Georgia and Tennessee in both drafting contracts and enforcing them via litigation and/or arbitration has provided clients with unique insights that help them anticipate problems and inform their decisions from start to finish.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need to form an LLC?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,513 reviews
See All Business Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need to form an LLC?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,513 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city