A series LLC is a unique form of limited liability company (“LLC”) in which assets and operations are divided into independent entities. Each new entity in the series operates as an independent entity with a unique name, assets, and accounting. A series LLC may have different members and managers in each entity within the series, and the rights and duties of these members and managers can differ from entity to entity within the series. Each series may enter into contracts and hold title to property, which makes series LLCs especially advantageous for real estate investors with multiple properties and operations.
A series LLC is uniquely advantageous because of the liability protection that is available to each entity in the series. Assets owned by one series are protected from the liabilities and risks of other entities in the same series. Much like a corporation with many subsidiary companies, the series LLC formation is designed to mitigate risk within separate entities without the cost of setting up entirely new businesses.
