Series LLCs

A series limited liability company is an entity structure that allows for the formation of multiple segregated LLCs, known as "series," under the umbrella of a single "master" or traditional LLC. In 1996, Delaware became the first state to enact a series LLC statute. Since then, a handful of states have amended their LLC statutes to allow for the formation of series LLCs. Generally, in the states that recognize them, series LLCs are segregated entities that have separate managers and members, distinct assets, and individual operating agreements. They also incur separate liabilities. However, those states also consider them a single entity for organizational filing and reporting purposes. By utilizing series LLCs, real estate owners can achieve a more streamlined, efficient process for asset protection. A real estate developer, for example, can choose to organize one traditional LLC, and then create separate, protected series for each parcel of real property with the liability of each series limited to the real property and other assets held by that series only.