Establishing a Series LLC in Indiana
A series LLC in Indiana is a form of LLC that offers its owners and members unique liability and tax advantages. The series LLC is made up of a master LLC and one or more sub-series that branch out of it. It is not difficult to establish your own Series LLC in Indiana.
Steps to Form a Series LLC in Indiana
- Name Your Series LLC
- Hire a Registered Agent
- File the Articles of Organization
- Draft Your Operating Agreement
- Get an EIN for Each Series
- Open Separate Bank Accounts
- Follow Formalities
What States Recognize Series LLCs?
Currently, the following states recognize the Series LLC structure: Alabama, California, Delaware, District of Columbia, Illinois, Iowa, Kansas, Missouri, Montana, Nevada, North Dakota, Oklahoma, Tennessee, Texas.
How Series LLC Operates
A Series LLC combines LLC advantages with establishing distinct series within it. Each series operates independently for liability and tax purposes. Regulations for Series LLCs vary by state.
Section 1: Operating Agreement
Section 1: 17-76,143(a) and 347.186.1 – the Operating Agreement. The first section of each state’s series LLC law has four things. First, it allows current and future series establishment within the LLC. Second, it allows “designated series” of members, managers, or LLC interests. Third, each “designated series” can have separate rights, powers, or duties regarding a property, obligation or profits.
Features of Series LLC
A Series LLC provides individualized liability protection to sub-companies (series) under one larger company. Each series operates separately with a unique name, bank account and books.
Benefits of Using Series LLC
The Series LLC allows real estate investors to segregate properties for liability protection without forming separate entities for each property. Proper formation, documentation, and maintenance are critical to gain these benefits in practice.
Conclusion
In summary, the series LLC provides a flexible structure to manage risk across a property portfolio for real estate investors.