A unique kind of limited liability corporation (LLC) called a series LLC enables a single LLC to create distinct “series” of assets, each with its own members, management, and business operations. Particularly for organizations with various business lines or real estate assets, this structure might offer benefits in terms of asset protection, tax efficiency, and operational flexibility.
Series LLCs are not permitted by all states, though. Only 18 states, as of 2021, had passed legislation specifically approving series LLCs, while others had either not yet addressed the issue or had expressly forbade them. Here is a list of the states that permit series LLCs and information on how to create one. States that Permit Series LLCs
Delaware, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nevada, North Dakota, Oklahoma, Tennessee, Texas, Utah, Wisconsin, Wyoming, Puerto Rico, the U.S. Virgin Islands, and Washington, D.C. are now the states that permit series LLCs. It’s necessary to speak with an attorney and/or accountant familiar with the laws of the state where you intend to establish your series LLC as each state has its own rules and procedures for creating and managing a series LLC.
Is it Possible to Convert an LLC to a Series LLC? The procedure will depend on the regulations of your state if you currently have an LLC and wish to change it to a series LLC. While some states only call for the creation of a new series LLC and the transfer of assets from the original LLC, others permit the conversion of an existing LLC to a series LLC through a straightforward update to the Articles of Organization. Once more, it’s critical to seek advice from an experienced professional to ensure compliance with state regulations and choose the right course of action for your company. Does Georgia Permit PLLC?
For licensed professionals like doctors, lawyers, and accountants, a professional limited liability corporation (PLLC) is a sort of LLC. Georgia is one of many states that permits PLLCs, however the particular guidelines and rules for establishing and managing a PLLC may differ based on the industry and the state. For instance, PLLCs in Georgia are required to submit a Certificate of Formation to the Secretary of State and acquire any professional licenses or permissions required. Does Georgia Permit LLP?
An LLC-like structure known as a limited liability partnership (LLP) offers liability protection for its members. But not all states permit LLPs, and depending on the state, the rules and procedures for establishing and running an LLP might vary greatly. LLPs are permitted in Georgia under the Georgia Uniform Partnership Act, and they are required to submit a Statement of Qualification to the Secretary of State. What Sets the Difference Between an LLP and an LLLP Apart?
A limited liability limited partnership (LLLP) is a kind of partnership that combines the tax benefits of a partnership with the liability protection of an LLC. An LLLP offers liability protection for both the general partners and the limited partners, as opposed to an LLP, which only protects the partners from responsibility. The degree of liability protection provided to the partners is the primary distinction between an LLP and an LLLP. But not all states permit LLLPs, and different states have different rules and procedures for creating and running an LLLP.
The limited liability rule is an idea in law that restricts a business owner’s liability to the amount of their investment in the company. This means that, unless there is fraud or other criminal activity, the owner’s personal assets cannot be taken in order to satisfy commercial debts or legal responsibilities. One of the primary justifications for choosing a business formation like a limited liability company (LLC) over a sole proprietorship is limited liability.