Series LLC
A Series LLC consists of a Limited Liability Company with more than one series of members, managers, or LLC interests. In some cases, a series LLC can have a separate business purpose or investment objective. For years, Delaware law has permitted an LLC to register separate series. Use of this structure remains uncommon due to uncertainty over federal income tax consequences. Advantages include:
- The Series LLC permits separate liability-insulated divisions within a single entity.
- A Series LLC could be used as a holding company owning intangible assets, or tangible assets such as real estate, or as an operating company conducting different lines of business.
- The Series LLC reduces costs associated with forming and maintaining multiple LLCs.
Other states that have enacted statutes permitting the formation and registration of series LLCs include Illinois, Iowa, Nevada, Oklahoma, Tennessee and Utah. To form a series LLC, contact a Business Specialist at 800-818-6082 (toll-free) or 302-636-5440.
