It’s crucial to first comprehend what a Series LLC is. An LLC that permits the development of distinct series, each with its own assets, members, and operations, is known as a series LLC. Each series inside the LLC is given some level of protection by this structure, which protects them from any liabilities resulting from the actions of other series within the same LLC.
Can a Series LLC also be a S Corp, then? No, is the response. A Series LLC cannot be taxed as a S Corporation, according to the IRS. Each series of the LLC is viewed by the IRS as a different organization, and only one entity may qualify for S Corporation classification. As a result, each series within a Series LLC would require its own S Corporation if its owner wanted to benefit from the tax advantages of a S Corp.
Let’s go on and talk about some connected issues. What is the annual fee in Illinois for an LLC? In Illinois, an LLC must pay a yearly charge of $75. Every year on the anniversary of the LLC’s incorporation, this fee is required.
In Illinois, may a trust hold an LLC? In Illinois, a trust is permitted to own an LLC. The trustee must be authorized to act on behalf of the trust, and the trust must be designated as a member of the LLC in the articles of organization.
And what exactly is a series partnership? Another sort of company structure that permits the creation of distinct series inside the partnership is a series partnership. Each series is recognized as a separate entity for liability purposes and has its own assets, members, and operations. A Series Partnership, however, is not recognized in all states and does not have the same level of legal protection as a Series LLC.
In conclusion, a Series LLC nevertheless provides some level of protection for each series inside the LLC even though it cannot be a S Corporation. In Illinois, business owners can create an LLC for $150, plus there is a $75 yearly fee. In Illinois, a trust may also own an LLC, and a series partnership is another type of corporate entity that permits the formation of distinct series.
No, a S corp and a series LLC are not the same thing. Both corporate entity types have advantages, but they are formed differently and have different legal and tax ramifications. A series LLC is a unique sort of limited liability company that enables the creation of numerous “series” or sub-companies under a single umbrella firm. An S corp is a type of corporation that elects to be taxed under Subchapter S of the Internal Revenue Code.