Series LLC

A Series LLC is a type of LLC allowed in 9 states (Utah, Nevada, Illinois, Texas, Delaware, Iowa, Oklahoma, Tennessee, and Wisconsin) that provides liability protection to each ”series” which is a separate entity under law but does not require a separate entity filing with the state and a separate tax return. The benefit of a series LLC is that each series is protected from liabilities arising from the other series and that the series LLC as a whole can file one tax return.

The most common use of a Series LLC is by a real estate investor or developer who desires separate liability treatment for each of their properties or projects by using a series for each but doesn’t want the additional cost or hassle of a separate regular LLC for each property.

A Series LLC files a “master LLC” with the state and authorizes itself to create separate series which have a distinct name and which must keep its assets, books, and records separate from the other “series” in the Series LLC. In order to ensure separate treatment for liabilities the series LLC it self must ensure that it is taking measures to properly separate the business activities of each series.