Forming a Series LLC

About a Series LLC

A Series LLC is an organization consisting of one LLC with multiple cells of owners, managers or Limited Liability Company interests. Each series is treated as a separate legal entity with its own rights and obligations, but only one formation filing is required with the Secretary of State. This new business structure originated in Delaware but is now also recognized in Illinois, Oklahoma and Nevada.

Series LLC Benefits

Setting up a Series LLC could allow a business to separate assets into distinct cells, providing greater liability protection for each asset and the business as a whole. The liability of one cell should not jeopardize assets held in another cell. This arrangement is of particular interest to customers who own real estate and wish to separate properties for greater protection. State regulations may vary, so it is important to research specific statutes regarding Series LLCs with a legal advisor.

Series LLC Taxes

A tax professional familiar with Series LLCs should be consulted prior to completing any tax filings to understand the federal tax consequences.  It is possible that a Series LLC may be taxed either as a single entity or as multiple organizations. Because the state of Delaware considers a Series LLC only one entity for tax purposes, only one annual franchise tax of $200.00 is required prior to June 1 of each year. The California Franchise Tax Board, on the other hand, taxes each part of a series or cell as a separate entity if the Series LLC is registered or doing business in California.

Forming a Series LLC

CorpAmerica can assist you in the formation of a series LLC in states that recognize this type of entity. In most cases, fees and turnaround time will be the same as for a non-series LLC in the state you select.  Ready to get started or have more questions? Contact one of our business specialists today at 877-246-2462 (toll-free) or 302-636-5448.

Did you know?

Delaware is our most popular state of formation for small businesses. Delaware is unique in that it has the "Court of Chancery" to resolve legal disputes timely and inexpensively. We can form your Delaware corporation or LLC for as low as $49 plus state fees.