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Overview of Series LLC
- A Series LLC allows unlimited division of assets and operations into independent series with different members and managers. Some states allow forming an LLC with a series option. These include Alabama, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Missouri, Montana, Nevada, North Dakota, Oklahoma, Puerto Rico, Tennessee, Texas, Utah, Virginia, Wyoming.
Benefits and Usage of Series LLC
- 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.
Formation and Financial Considerations
- Each Delaware Series LLC series must apply for its EIN with the IRS.
- Most banks require a separate EIN for each series’ bank account.
- Delaware does not require a report for each Series LLC series.
- A registered series is formally State approved.
Tax and Legal Considerations
- The IRS has no guidelines for Series LLC EINs.
- Generally, the parent Series LLC obtains an EIN.
- Consult an attorney or accountant to determine if each series needs its Tax ID Number.
Professional LLC Considerations
- Check with your board and attorney if a Professional LLC is required in your state.
- Some states require licensed professionals to form a Professional LLC.
Additional Information
- Some clients reach attorneys to help keep assets separate between series and maintain records separately.
Conclusion
- Series LLCs provide flexibility and protection for organizations with diverse operations.
