Types of LLCs
LLCs are usually grouped by how many owners they have, who runs them and whether they use a special form. That gives you single-member or multi-member, member-managed or manager-managed, and special forms such as series, professional and low-profit LLCs. Most small businesses need a standard LLC.
Updated November 1, 2026
By number of owners
A single-member LLC has one owner. For federal income tax it's ignored by default, and the profit goes on the owner's return. A multi-member LLC has two or more owners and is treated as a partnership by default. It files an information return and gives each owner a Schedule K-1.
Either one can elect to be taxed as a corporation. That changes the tax treatment and leaves the company an LLC under state law.
By who runs it
In a member-managed LLC, the owners run the business. California treats every LLC this way unless its articles say otherwise. In a manager-managed LLC, the owners appoint one or more managers, and those people may or may not be owners. This suits a company with investors who don't want to run it. Texas asks you to pick one on the formation form. Managing members explains the roles.
Series LLC
A series LLC creates compartments inside one company, each with its own assets, members or purpose. Delaware and Texas both allow them. Delaware charges $100 a year for each registered series, and Montana charges $50 for each series named in the articles.
Not every state offers this form. If you operate across states, ask an attorney how the separation holds up where you do business.
Professional LLC
Licensed professionals often can't use an ordinary LLC. California doesn't let an LLC provide the professional services defined in its corporations code. Kentucky's fee schedule lists professional service LLCs alongside ordinary ones. You'll often see the initials PLLC. Your licensing board is the one to ask, because this varies by state and by profession.
Low-profit and public benefit LLCs
These exist for companies with a social mission alongside profit. Vermont lets an LLC elect to be a low-profit LLC, or L3C, if it meets the requirements in its statute, and the name must include L3C. Delaware's fee schedule includes a statutory public benefit LLC. Neither one is a nonprofit form by itself, so check the tax rules before you pick one.
Terms that aren't really types
Domestic and foreign describe location. The SBA says your LLC is domestic in the state where you form it and foreign in every other state.
Disregarded entity is a tax term for a single-member LLC.
Holding company describes what an LLC does. See LLC holding company.
Anonymous LLC is a nickname for an LLC in a state whose filings don't name owners. See who owns an LLC.
Questions
What type of LLC is best for a small business?
Usually a standard LLC, single-member or multi-member, run by its owners. The special forms solve specific problems that most small businesses don't have.
Is a single-member LLC a sole proprietorship?
No. The state treats it as a separate company. For federal income tax it's reported much like a sole proprietorship, and that's the part people mix up.
Can I change from member-managed to manager-managed later?
Yes in most cases. Update your operating agreement, and file an amendment if your articles state how the company is managed.
What is a foreign LLC?
An LLC formed in one state and operating in another. The second state calls it foreign, and you may need to register there.
Is an LLC taxed as an S corp a different type of LLC?
No. It's the same LLC under state law with a different federal tax treatment.
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