The Series LLC is now in 8 states, but authorized to do business in almost all of the rest. Of course, there is one exception and that is California. If you’re in California, or have nexus there, make sure you talk to someone very experienced in the Series LLC first before you jump into the structure.
The Series LLC is basically an LLC (limited liability company) that has a main structure with little cells off of it. Picture a mother ship with little pods off of it. The pods are all separate for asset protection purposes and can either roll up into the mother ship when it comes to tax time, or they can be completely standalone operating entities.
One the best parts about LLC law is that the LLC gets to elect how it is taxed, so it’s possible to have different cells operating as partnerships, S Corporations AND C Corporations. But, they’re all part of the same Series LLC.
This flexibility and ease of use give you three main benefits:
(1) Ultimate in privacy. In most cases, you don’t have to record a Series LLC cell ANYWHERE
(2) Exceptional flexibility. If you have a bunch of real estate investments and don’t want the cost and hassle of multiple LLCs, then a Series LLC is perfect for you. Set up one Series LLC and have multiple cells. Each cell owns a property, giving you great asset protection, but they all collapse into one return come tax time. Or you may be a serial entrepreneur with multiple businesses. You can open up a Series cell, by yourself, in 2 hours or less. No filing. No hassle. No cost.
(3) Absolute asset protection. Each cell of the Series gives you the superior asset protection of an LLC. The assets are separately protected from judgments and from each other.
(4) Speed! If you ever find yourself wishing you had a corporation or LLC laying around, now you can. A Series LLC in your hip pocket gives you the ability to open up an entity anytime you want.
Megan Hughes is an expert at setting up the Series LLC for advanced tax planning. Megan and I will be talking about the amazing benefits of these great structures in our next coaching call at http://www.USTaxAid.com/coaching. The call is February 9, 2010. When you sign up you’ll be able to get access to the materials right away for the past C Corporation Tricks & Traps session, plus the Series LLC for February 9, 2010 and the Nexus coaching course on February 23, 2010.