Does Utah Recognize Series LLCs?

As of 2021, Utah will accept Series LLCs, a relatively new sort of limited liability company structure that is becoming more and more well-liked throughout the US. Creating many “series” within the firm, each with its own assets, liabilities, and members, is possible with a series LLC. The assets and liabilities of one series are shielded from the liabilities of other series within the same LLC, and each series functions independently of the others.

The ability to construct many series inside a single LLC is the main distinction between a normal LLC and a series LLC. This enables the division of assets and obligations among various series, increasing the security of the assets of each series individually. In a typical LLC, there is no distinction between various assets and liabilities; rather, the firm as a whole has all assets and obligations.

A bank account that is expressly created for a particular series under a Series LLC is known as a Series LLC account. It is possible for each series inside a Series LLC to have its own bank account, which enables the division of funds among various series.

What’s the procedure for forming an LLC in Utah? Articles of Organization must be submitted to the Utah Secretary of State in order to establish a Series LLC there. The names of the series that will be created within the LLC, as well as wording indicating that the LLC is a Series LLC, must be included in the Articles of Organization. Is a series LLC a good option in this regard?

The demands and objectives of your particular organization will determine whether or not a Series LLC is a viable idea. Series LLCs may offer greater flexibility and asset protection than normal LLCs, but they may also be more complicated and expensive to set up and operate. You can decide if a Series LLC is the best option for your company by speaking with an experienced lawyer or business advisor.