As you contemplating starting a
new business or expanding your current business in 2018, you may have the
option of using the series LLC business structure. The series LLC is a unique
business structure in that it allows for an unlimited number of separate
business interests. Each series has its own name, bank account, and records.
The most important characteristic is the liability protection that is available
to each series. Assets owned by one series is covered from the liability of the
other series.
Currently, the series LLC is not
available in every state. The states where the series LLC is available include:
- Delaware
- Illinois
- Iowa
- Nevada
- Oklahoma
- Tennessee
- Texas
- Utah
- Puerto
Rico
California does not allow for the formation of the
series LLC at this time, but series LLCs formed in other states can register
and do business in California.
Once the series LLC is formed, you will need an
operating agreement for each entity. The master LLC operating agreement usually
provides the rules for each subsequent created entity and the operating
agreement will provide the customized procedures for each series.
There are still unresolved tax issues concerning
whether the series LLC regarding whether each series is a separate entity for
tax purposes. You may want to consult with a tax professional within your state
to understand the implications of the tax laws on your series LLC.
