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.