Series Limited Liability Company (Series LLC)
A Series LLC is a business structure that allows a business owner to create multiple series under one umbrella LLC. Each series is insulated from liability for the actions of the others.
Benefits of a Series LLC in Real Estate
A series LLC structure can benefit real estate investors with multiple properties by allowing them to reduce liability and keep properties organized.
LLC vs. Series LLC
What is the difference between an LLC and a series LLC?
A series LLC consists of a master LLC and one or more individual series that branch off from it. With a series LLC, ownership is divided and managed differently, allowing each division to operate as its own entity under a single legal entity.
Before understanding what a series LLC is, it’s first essential to understand what a Limited Liability Company (LLC) is. As the name suggests, this type of company limits the owners’ liability and creates a separate identity by and for itself.
One option you might suggest is for them to better protect their assets by setting up a series limited liability company or SLLC for short. Here is what to tell your clients about structuring their business as an SLLC and what protections the entity offers.
This is where a series limited liability company or series LLC is a good option for you. Here are some of the reasons why you should operate your real estate business under a series LLC umbrella. Helps To Keep Your Properties Organized. A series LLC helps to keep all your properties organized under a parent company, with all your properties operating as their own individual companies.
A series LLC is a business structure that builds on the concept of a limited liability company to create a protected series of individual business entities. What separates a series LLC versus a traditional LLC is that a regular LLC is one distinct business entity, while a series LLC is a cluster of separate legal entities formed under one parent LLC.
The main benefit of forming a standard LLC over a series LLC is the ease of formation and management. A standard LLC is not only simpler to set up, but you won’t have to deal with the inconsistencies of series LLCs as your business grows. You’ll also have to deal with multiple bank accounts and registered agents if you have a series LLC, which, if you don’t have several business partners, can get confusing.