Series LLC

A series LLC is a particular type of Limited Liability Company that can be used for optimal asset protection for companies running certain types of businesses. The LLC is a generally useful designation that is often used for separating personal assets from business assets. The main goal of the LLC is to protect business owners from the necessity of putting their own assets on the line when company debt becomes an issue.

Such protection, however, is not always sufficient. The situation of the property owner is a common and enlightening example regarding the functioning of series LLCs. A property manager may own and rent out a slew of different apartments, houses or pieces of land. If one simply forms an LLC to deal with asset protection of such a real-estate collection, one may face problems when one particular property becomes problematic. To pay creditors for one property, other business properties may need to be relinquished.

A series LLC allows each property to be treated separately within the company. The company is still regarded as a single entity. This type of company allows owners to handle underperforming properties without affecting the operation of successful ventures.

Delaware Series LLCs

Delaware is currently one of the only states in the nation to offer series LLC status. In combination with the state's Court of Chancery, a specially designed business legal system, series LLC status makes Delaware a place where a business owner can feel secure about the status of his or her company. Contact a registered agent to learn more about incorporating in Delaware.