A Texas Series LLC is a special kind of Limited Liability Company that is made to allow the creation of separate and safe subdivisions inside of the same LLC. Since its initial introduction in Texas in 2009, it has grown in popularity among company owners around the state. A series LLC enables business owners to create distinct series or cells with their own assets, liabilities, and members under the same parent company. As a result, each series may have independent business activities, agreements, and contracts.
A Texas Series LLC works by dividing up the LLC into different series or cells. Each series is handled as a distinct, independent legal entity from the parent LLC and other series. Each series’ operational and administrative duties, such as tax preparation, record keeping, and asset management, are handled by the parent LLC.
Each series inside a Texas Series LLC is shielded from the obligations of other series within the same LLC, which is a considerable advantage. As a result, the assets and obligations of other series are safeguarded even if one series encounters legal or financial difficulties. It is the perfect choice for business owners who want to separate their assets and liabilities because of this characteristic.
How Can a Series Be Added to Your LLC? You must submit Articles of Organization to the Texas Secretary of State in order to add a series to your LLC. The name of your LLC, the state in which it was formed, and the name of the series you intend to start should all be listed in the Articles of Organization. The LLC’s registered agent’s name and address should also be included.
Like naming an ordinary LLC, naming a series LLC is comparable. You must select a distinct name that hasn’t already been submitted to the Texas Secretary of State for registration. To make it clear that your LLC is a series LLC, you should additionally include the terms “Series” or “Serie” in the name.
By submitting Articles of Conversion to the Illinois Secretary of State, you can convert an LLC to a Series LLC in that state. The name of the LLC, the state of creation, and the name of the series you want to create should all be included in the Articles of Conversion.
A Series LLC is unable to be a S Corp. A Series LLC is not considered a separate entity by the IRS for taxation purposes. It cannot be categorized as a S Corp as a result. However, you can choose to have each series taxed as a separate organization, which could provide business owners some tax advantages.
To sum up, a Texas Series LLC is a special kind of LLC that allows for the creation of distinct and safe subdivisions inside the same parent business. Each series under a single LLC is treated as a distinct legal entity and is shielded from the liabilities of other series. A Series LLC might be useful for business owners who desire to divide their assets and obligations. You must submit Articles of Organization to the Texas Secretary of State in order to add a series to your LLC. Each series should have a distinct name that contains the word “Series” or “Serie.” Each series of an LLC can choose to be taxed as a separate business, even though a Series LLC cannot be a S Corp.
The relevant query has no immediate bearing on the article’s subject, which is the operation of a Texas Series LLC. But to address your question, as of 2021, the annual charge establishing an LLC in Illinois is $75.