How to Create a Series LLC
To form a series LLC, first choose a state allowing it. You need a name for the series LLC and each cell you create. State laws differ on cell requirements. Get an EIN for the series LLC and each cell from the IRS. Use the series name with the cell name for each EIN. The fee for a series LLC in Nevada with one series is $489.95 for up to 4 members. Series LLCs offer liability protection and asset separation.
What is a Series LLC?
A series LLC allows owners to separate assets and operations into different compartments or series independent from one another. For example, ABC LLC can have Series A LLC and Series B LLC – "mini LLCs". As a result, one protected series may be insulated from the debts of other protected series.
Does Each LLC in a Series Need an EIN?
A series LLC allows owners to separate assets and operations into different compartments or series independent from one another. For example, ABC LLC (Master LLC) can have two series – Series A LLC and Series B LLC – representing mini LLCs within ABC LLC. As a result, one protected series within the Series LLC may be insulated from the debts of other protected series.
While company members are secured against the entity’s commitments, each cell inside a Series LLC is protected against the debts of other cells. The funds of one venture cannot settle claims against any other venture.