A special type of LLC called a “Series Limited Liability Company” (LLC) enables the establishment of distinct “series” inside the LLC. Each series can be a part of the same LLC while having its own assets, liabilities, and members. Businesses who desire to divide their assets or activities without setting up additional LLCs will find this structure to be especially helpful. Does Georgia, however, permit Series LLCs?
The state of Georgia does indeed permit Series LLCs. Georgia actually passed legislation allowing the creation of Series LLCs in 2010, making it one of the first states to recognize these legal entities. It’s crucial to keep in mind that not all states recognize Series LLCs, and those that do could have varied rules and criteria.
A Series LLC’s name must contain the terms “Series LLC” or “SLLC.” The LLC’s series must also each have their own distinct name that contains both the LLC’s name and the series identifier, for example, “ABC Series 1 LLC” or “XYZ Series 2 LLC.”
It’s also important to remember that a Series LLC and Series Partnership are not the same thing. A sort of cooperation known as a “Series Partnership” enables the development of individual series inside the partnership. While still being a member of the same partnership, each series may have its own assets, liabilities, and partners. Series Partnerships may have varied rules and laws and are not recognized in all jurisdictions.
In this regard, an LLC is a recognized entity as defined by the Uniform Commercial Code (UCC). A body of legislation known as the Uniform Commercial Code (UCC) governs business formation and operation. An LLC is subject to UCC laws because it is regarded as a distinct legal entity that is able to contract, own property, and carry on business in its own name.
In conclusion, Series LLCs are permitted in Georgia, and companies wanting to benefit from this structure may do so in accordance with Georgia law. However, it’s crucial to make sure that the Series LLC is acknowledged in each state in which it conducts business and to adhere to all pertinent laws and specifications. It’s also critical to comprehend the distinctions between a Series LLC and a Series Partnership, as well as the rules for LLCs under the UCC.