• LLCs are particularly popular for those who want to avoid being personally responsible for company mishaps.debt defined image by Christopher Walker from Fotolia.com
  
  A Limited Liability Company, or LLC, is a business structure that allows owners to have limited liability with company debts or lawsuits. This means that they cannot be personally sued for damages incurred by the company. It also offers "management flexibility and the benefit of pass-through taxation," according to the Internal Revenue Service (IRS). Still, there are certain restrictions and licensing regulations that must be followed in order to register a business as an LLC.
  
  

Federal Laws

• Most LLC licensing in the United States is regulated at the state level. However, there is one federal LLC regulation that business owners should be aware of. The federal government does not recognize an LLC as its own separate business entity, as it may be recognized at the state level. When it comes to paying federal taxes, all LLCs must be registered as a corporation, partnership, or sole proprietorship.
  
  

State Laws

• LLC licensing laws vary from state to state. Still, there are some similarities among them. Typically, a business must register with local or state finance/insurance offices and pay a licensing fee. In 2010, this fee ranged from as little as $25 to as much as $400 but could be more, depending on where the company will be located in the state. Some states have one flat business licensing fee for all business licenses in all areas of the state, as is the case in Alaska. These licenses must be renewed periodically, which also usually costs a fee.
  
  

Other Licensing Laws

• There may also be additional licensing requirements in certain localities. For example, in New York State, the LLC's office must be located and must remain within the state in order for the license to remain valid. Additionally, LLC names must be approved by the state before the licenses will be issued. Most states also ensure that an LLC is complying with other state laws before registration can be completed. In Utah, business premises are usually inspected for compliance with all public safety and zoning laws before an LLC license will be issued; many other states and localities across the nation do this as well. This is why many state licensing agencies will ask what sort of business the LLC is before the application is complete. Business owners seeking an LLC license should contact local and state governments to see what specific licensing laws apply.