Series LLC
A special LLC structure where each asset is held in a separate "series" with individual liability protection.
Definition
A Series LLC is a unique business structure that allows a single LLC to contain multiple sub-entities (called "series"), each with its own assets, liabilities, and members. Each series is legally isolated from the others, meaning a lawsuit or liability affecting one property's series does not put other series' assets at risk. This provides the liability protection of separate LLCs without the cost and paperwork of forming and maintaining multiple entities. Series LLCs are recognized in about 20 states, including Delaware, Texas, and Illinois. Investors with large portfolios can save significant administrative costs compared to maintaining dozens of individual LLCs.
Related Terms
LLC
A Limited Liability Company — a business structure that separates personal assets from investment property liability.
Asset Protection
Legal strategies to shield personal assets from lawsuits, creditors, and liabilities arising from investment properties.
Operating Agreement
A legal document that defines the ownership structure, roles, and rules of an LLC.
Liability
Legal responsibility for debts, damages, or obligations that may arise from owning or managing property.
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