What Is a Separate Series Agreement? Overview of Series LLC

A series LLC lets owners structure multiple LLCs under one master LLC, providing liability protection without extra fees. The IRS treats each member as a separate entity to choose taxation like an S-corp or partnership. An existing LLC can become a series LLC, but the process varies by state.

Converting an Existing LLC to a Series LLC

You can convert an existing LLC into a series LLC by amending formation documents.

Benefits of a Series LLC

A series LLC allows owners to consolidate activities under one LLC with separate child series branching from it. The key benefit is protecting each series’ assets from the liabilities of others.

  • Each series LLC is only liable for its debts, protecting other series if sued.
  • Forming and managing a series LLC is simpler than multiple LLCs.
  • The tax treatment of series LLCs varies by state since it is a state designation. As they become more common, tax regulations are changing.

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