Choosing the appropriate legal structure is one of the most crucial decisions you’ll make when starting a business. The Limited Liability Company (LLC) and the Series LLC are two well-liked solutions for small business owners. There are several significant variations between the two, even though they both provide limited liability protection and pass-through taxation.
The primary distinction between an LLC and a Series LLC is that a Series LLC enables the creation of numerous “series” under a single LLC. Businesses that seek to segregate their operations or investments can benefit from each series having its own assets, obligations, and members. A real estate investor, for instance, could set up a Series LLC to hold various properties in various series, lowering the risk of losing all assets in a litigation involving a single property.
A standard LLC, on the other hand, only has one “layer” of protection, which means that all of the LLC’s assets and liabilities are linked together. This implies that if one aspect of the company is sued, all assets held by the LLC could be at jeopardy. Even though an LLC can be changed into a Series LLC, the process can be challenging and may call for legal counsel.
The primary office is where the business is based and is typically where most business operations are carried out. The business’s official address for legal and tax reasons, however, is its registered office. The state will send crucial letters to this address, where it can also be used to serve legal documents and notices.
Then, is the registered office the same as the major place of business? No, the registered office and the major place of business are not the same. The majority of commercial activity take occur at the principal place of business, whereas the registered office is the formal address used for legal and tax purposes.
The principal’s office is a real, physical site where most business transactions are made. It could be a storefront, a home office, or any other place where the company conducts business.
A third-party service called a commercial registered agent in DC assists companies in fulfilling the mandate to have a registered office in the District of Columbia. This service gives the registered office a physical address and receives legal and tax paperwork on the company’s behalf. The receipt of legal documents and notices on behalf of the business shall be made by the registered agent during the regular business hours.
Regarding LLCs and Series LLCs, the article makes no mention of commercial or noncommercial use. It focuses on describing how these two varieties of limited liability companies differ from one another.