Because it provides owners with the liability protection of a corporation without the formalities and complications of a corporation, the limited liability company (LLC) is a popular business structure. A relatively recent sort of LLC that is gaining popularity among business owners is a series LLC. An LLC with the potential to divide itself into different series, each with their own assets and liabilities, is known as a series LLC. So, are series LLCs permitted in Tennessee? Do Tennessee Series LLCs Have Permission?
Yes, series LLCs may be incorporated in Tennessee. Since it was passed in 2011, the Tennessee Series LLC Act has allowed LLCs to establish distinct series with different members, managers, assets, and liabilities. Each series is free to carry out its own commercial endeavors and to sign contracts and agreements in its own name.
A series LLC is designed to give business owners the ability to separate their assets and liabilities. The assets of one series do not affect the liabilities of another series since each series within the LLC is recognized as a separate company. This can be helpful for companies with numerous departments or initiatives, as well as for real estate investors who want to divide their assets into various series.
No, for taxation purposes, each series inside an LLC is recognized as a separate entity. This implies that every series will require its own tax return to be filed. But only one registration statement will have to be submitted to the state on behalf of the entire series LLC.
You must submit a registration statement to the Tennessee Secretary of State in order to form a series LLC in Tennessee. The series LLC’s name, the series’ names, and the registered agent’s name and address should all be included in the registration statement. The registration statement has a $300 filing cost.
The filing fee in Tennessee is $300 to incorporate a standard LLC. A $50 yearly report fee is also required and is due each year. There is a $50 extra cost if you want the filing procedure to be sped up.
To sum up, Tennessee does permit series LLCs, which can be advantageous for companies looking to separate their assets and obligations. For taxation purposes, each series within a series LLC is recognized as an independent entity. In Tennessee, establishing a series LLC entails submitting a registration statement with the Secretary of State and paying a $300 filing fee.
In Tennessee, a series LLC is a special kind of limited liability corporation that enables the formation of various series or cells, each with its own assets, liabilities, and shareholders. Due to the fact that one series’ liabilities do not affect the other series’ liabilities within the same LLC, this structure offers more flexibility and security for business owners.