What is a series of an LLC?
A Series LLC consists of the “parent” or “umbrella” LLC with one or more series that are established under the parent. Each series has characteristics that are separate from the Series LLC itself and every other series. Each series can have its own assets, members, managers, purpose, and investment objectives.
What is the difference between an LLC and a series LLC?
A series LLC is a regular business LLC that is set up to hold several properties or interests underneath one LLC. A restricted LLC, on the other hand, is a vehicle created to transfer assets within a family and is not meant for doing business.
What states allow series LLC?
Some states allow you to form a series LLC and other states don’t. Other states that have a series LLC option include Alabama, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Missouri, Montana, Nevada, North Dakota, Oklahoma, Puerto Rico, Tennessee, Texas, Utah, Virginia, Wyoming.
What is a series LP?
A series limited liability company, commonly known as a series LLC and sometimes abbreviated as SLLC, is a form of a limited liability company that provides liability protection across multiple “series” each of which is theoretically protected from liabilities arising from the other series.
Will my LLC have series?
The California series LLC is a rarer entity as California does not allow for series LLCs to be formed under state law, but series LLCs formed in other states can register with the state and do business in the state. What is the difference between an LLC and a series LLC?
Is a series LLC better than an LLC?
Compared to a normal LLC, A Series LLC is: More tax efficient. More cost effective. Better at protecting your assets.
How is a series LLC taxed?
A Series LLC Treated as an S-corporation A pass-through entity does not pay taxes, rather the S-corporation passes its income and losses through to its shareholders. The shareholders of an LLC treated as an S-corporation report the earnings and losses of the S-corporation on their personal income tax returns.
Who uses series LLC?
Using a Series LLC The series LLC can be used by real estate investors who own multiple properties. Each series isolates and protects its properties from the liabilities of the properties in other series. Companies with different profit centers can use series LLCs to segregate and shield each business operation.
Do I need a pllc?
PLLCs are a requirement in some states, but not all Some states require that licensed professionals form a PLLC. Some states allow licensed professionals to choose between PLLC and LLC. Ultimately, you will need to check with your local licensing board and/or to speak to an attorney in your state.
Why would I need a Series LLC?
A Series LLC can be a great way to separate your business assets and divide the responsibilities for investment and debt in different areas or divisions of your company. A Series LLC allows you to form multiple “mini-LLCs,” so to speak, and operate them all under a single umbrella company.
Does a Series LLC need its own EIN?
When applying for an employer identification number (“EIN“) on IRS.gov you must provide the legal name of the LLC that is applying for the EIN. After all, banks require a separate EIN for each series and each series is a separate entity for all purposes.