What types of businesses are typically LLCs?

Question

also, what types are not permitted to be LLCs?

Answer 1

With few exceptions, LLCs may be formed for all types of businesses. You may even form one LLC to engage in several businesses -- for example, furniture sales, trucking, and redecorating can all be operated under one legal (if not physical) roof. But certain kinds of businesses, mostly financial in nature, may either be restricted or prohibited from setting up an LLC in your state. For example, companies that engage in the banking, trust, or insurance business are typically prohibited from forming LLCs.

Certain professionals may also be prohibited from forming an LLC in some states, or at least be subject to special rules when forming one. For example, the initial LLC members may need to obtain a statement from their state licensing board, certifying that they all have current state licenses, and file it with their LLC articles. State restrictions for professionals apply mostly to doctors and other licensed health care workers, lawyers, accountants and, in some states, engineers and architects. In some states, such as California, certain professionals may not be able to form an LLC at all. In other states, these professionals may have to form a "professional LLC" or at least follow special procedures if they choose to form an LLC.