What Is the Benefit of a Series LLC?

Series LLC Overview

A series LLC is a business structure that creates a protected series of individual business entities under one parent LLC.

Benefits of Series LLC

  • Liability Protection: Each series within a series LLC is shielded from the liabilities of other series and the master LLC.
  • Cost-Effective: Establishing a series LLC reduces paperwork and costs compared to multiple standalone LLCs.

Differences between Series LLC and Regular LLC

  • Taxation: A series LLC is taxed as a single entity, whereas a regular LLC may be taxed differently.
  • Asset Protection: Each series in a series LLC offers separate asset protection, unlike a regular LLC.
  • Formations and Maintenance: Setting up a series LLC can be more complex and expensive than a regular LLC.

Conclusion

A series LLC provides flexibility and efficiency not found in traditional business entities, offering distinct advantages for certain enterprises while also posing potential risks.

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