States Allowing Series LLC Formation
Some states allow forming LLCs with a series option, including Alabama, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Missouri, Montana, Nevada, North Dakota, Oklahoma, Puerto Rico, Tennessee, Texas, Utah, Virginia, Wyoming. Real estate investors use Series LLCs to isolate and protect properties from other series’ liabilities. Companies with different profit centers use Series LLCs to shield each business operation. Check with your board and attorney if a Professional LLC is required in your state.
Managing Multiple Entities in a Series LLC
As each LLC has its bank account, it also has its EIN. You can quickly apply for an EIN online. Delaware does not require a report for each Series LLC series. Each Delaware Series LLC series must apply for its EIN with the IRS. Each series is a separate tax entity.
Considerations for Maintaining Series LLC Entities
Some clients reach attorneys to help keep assets separate between series, and maintain records separately. A key difference is filing paperwork to become official under law. A registered series is formally State approved.
Regarding if each series needs its Tax ID Number, speak with an attorney or accountant. The IRS has no guidelines for Series LLC EINs. However, a separate EIN for each series avoids confusion. Generally, the parent Series LLC obtains an EIN.