Is a Series LLC right for you?

WHAT IS A SERIES LLC?
HOW CAN IT SAVE YOU MONEY

Video Overview:
Introduction to Series LLC
The first state to enact a series LLC was Delaware in 1996
Texas enacted non-entity series LLC legislation in 2009
"Bus. Org. Code § 101.601 et seq"
List of current states that recognize them

Alabama
Arkansas
Delaware
District of Columbia
Illinois
Indiana
Iowa
Kansas
Missouri
Montana
Nebraska
Nevada
North Dakota
Oklahoma
Puerto Rico
Tennessee
Texas
Utah
Virginia (effective 2020)
Wyoming

What is a series LLC?
Parent and child structure
Different ownership percentages, individual operating agreements for each cell
Debts and liabilities of each are separate from each other and from parent
Taxes all roll into one EIN, easier and cheaper tax returns

Is it right for me?
If you create many small $500k revenue, businesses, perhaps frequently opening and closing e.g. flipping houses **great candidate**
You have single ownership or small group of investors that are aware of and consent to the RISK of series
Do you want to save money on formation costs? If so, consider series LLC.
DO NOT USE a series LLC
If you are risk adverse, the legal structure has not had quite enough time to be litigated and proven what steps are needed to ensure compliance.
If your lender requires an SPE (special purpose entity, single purpose entity) you cannot use a series LLC.
As an observation, no “large players” $2-5 million+ use a series LLC, even the slightest 0.01% increased risk isn’t worth saving $900 per entity.

How do I create it?
You’ll need to check with your state guidelines, but in TX you will include supplemental language as provided by Texas Statute with your Form 301 plus you’ll file a DBA for each sub-entity.
Tex. Bus. Org. § 101.601
Draft an Operating Agreement and resolutions for parent and sub entity
Request an EIN for the parent entity
That’s it, you can now contract and hold property in a sub-entity Series LLC
Each additional sub-entity will only require additional DBAs

Thanks for watching and visit our website to contact us for a free consultation!

https://ronaldrohdelaw.com/new-client-consultation/
www.ronaldrohdelaw.com

Видео Is a Series LLC right for you? канала Ronald Rohde Law