States Allowing Series LLC Formation
- Delaware
- Alabama
- Arkansas
- District of Columbia
- Illinois
- Indiana
- Iowa
- Kansas
- Missouri
- Montana
- Nevada
- North Dakota
- Oklahoma
- Puerto Rico
- Tennessee
- Texas
- Utah
- Virginia
- Wyoming
Benefits of Series LLC
The utility of a Series LLC may be explained by comparison to the alternative. Many form an LLC to protect personal assets from legal claims relating to real estate investment or business liabilities. Additional protection may be gained by properly forming a separate LLC to hold each property or business entity. Without a series LLC, these businesses would need separate LLCs for the same protection.
Considerations for Series LLC Formation
Tennessee allows series LLCs. A series LLC separates assets and operations of individual series LLCs under an umbrella master LLC. Is a series LLC a good idea? There’s no definitive answer as it depends on the situation. Some potential advantages include the ability to isolate assets and liabilities within each series, reduced administrative costs, and flexibility to change structure as needed.