What Is a Series LLC & Why Might I Need One?

Series LLC: Wise Strategy or Risky Business? X X Setup Multiple Similar Ventures Under a Single, 1 Umbrella LLC A Series LLC consists of an “umbrella" company with separate, mini LLCS underneath for the ventures or business lines that you run. Where You Can Form a Series LLC 2 Series LLCS are only available and recognized in a few states: You cannot form a Series LLC 1- Delaware 5 - Oklahoma in states other 2 - Illinois 6 - Tennessee than these. 3 - lowa 7- Texas 4 - Nevada 8 - Utah 3 Thriving Business Types Under Series LLC Construction businesses: Separate mini LLCS for each project Property owners: Mini LLCS for each investment property Investment businesses: $ Mini LLCS for different types of financial services or portfolios It Can Work Well 4 for Your Business Lets you create and run “mini-LLCS" under the same, overarching business Liability protection, simple administration and easy registration Separate finances, investments, managers, members and separation of liability and debt Each LLC is protected from risks and liabilities that may impact the others Requires much less paperwork and cost It Might Also Carry Some Drawbacks If you operate across multiple states, some may not recognize your series LLC Separate financial records and bank accounts can increase your administration overhead Laws governing series LLCS vary from state to state So, Should You Form a Series LLC or a Regular LLC? A series LLC might make sense if: You run more than one business venture in the same industry. You want to separate and isolate your liability, risk and debt between your ventures. You don't mind working with multiple bank accounts and financial management. You understand the legalities. incfile ..........