Each state may use different regulations and you should check with your state if you are interested in starting a limited liability company. The owners of a limited liability company are called partners. There are some limitations on the type of business that is permitted to form an LLC. In general, banks and insurance companies are not permitted to form limited liability companies. Unlike corporations, LLCs are not required to hold periodic meetings. There are also no ownership restrictions for LLCs. With LLCs, they can use the cash method of accounting instead of the accrual method. This means that their income is not shown until they have actually received it. Like sole proprietorships and partnerships, LLCs have the luxury of avoiding being duplicitous