A SERIES Limited Liability Company (Series LLC) is a much newer form of business entity than even LLCs in general. They were designed to provide an easier and simpler business entity primarily for real estate owners (and other asset holders) who had multiple properties that were formerly held in separate LLCs. They are the same as a Limited Liability Company but with the ability to create a number of SERIES, or Sub LLCs, within the one main LLC structure.
Each Series, then, has a separate and distinct liability. This means, essentially, that each asset is in a separate company and not subject to the debts or judgments of another. This replaces having to have multiple companies.
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While a Series LLC can save you legal and accounting fees down the road, it does NOT save you bookkeeping time or expenses as each series must still maintain its own bank accounts, bookkeeping and corporate records.
Also, they may not be advisable when you want to have some assets owned by one set of people and other assets owned by other people. Further, while they are legally authorized entities, they are a newer form of entity and have not been fully vetted by state courts.
Here’s a longer video:
ALL LLCS REQUIRE NUMEROUS DOCUMENTS IN ORDER TO BE VALIDLY RUN AND MAINTAIN THEIR LIABILITY PROTECTION. SIMPLY FILING ARTICLES OF FORMATION WITH THE STATE DOES NOT PROVIDE ALL THESE DOCUMENTS. PLEASE CONSULT AN ATTORNEY BEFORE FILING ARTICLES.
THIS INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT AN ATTORNEY BEFORE FORMING ANY BUSINESS ENTITY.