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LLC also known as Limited Liability Company. A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LL Cs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LL Cs, those having only one owner. A few types of businesses generally cannot be LL Cs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information. There are special rules for foreign LL Cs. An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election PDF, to elect how it will be classified for federal tax purposes. Generally, an election specifying an LLC’s classification cannot take effect more than 75 days prior to the date the election is filed, nor can it take effect later than 12 months after the date the election is filed. An LLC may be eligible for late election relief in certain circumstances. If you want to to pay yourself through payroll, you will need to file the Form 8832 otherwise you take Draws(Single member) or Guaranteed Payments for multiple members.