delaware series llc For Handling Multiple Assets

2007-03-08 10:33:40

( Business )



If you own multiple properties, businesses, investments or other assets and you want to incorporate delaware, why not consider a delaware series llc business structure – it could be just the right solution for you.

Adelaware series llc:
- is formed in Delaware
- is a limited liability company
- provides you with the opportunity to create, within a single llc, individual series of assets and liabilities
- each individual series within the single delaware series llc works as an internal subsidiary llc and can have separate:
• members
• assets
• liabilities.

Even if you don’t incorporate in delaware, if you register the delaware series llc at the offices of the Secretary of State, you can do business in another specific state as well.

The delaware series llc only has to pay one franchise tax, no matter how many series there are within the company.

However the statutory fee is charged according to the llc’s gross receipts as a whole and not on each individual series.

If you decide to incorporate delaware, the major benefit that you have with a delaware series llc is that your assets in each series are protected from the liabilities of a particular asset or activity of the other series.

Creditor recourse can be limited to each individual series only – which reduces the risk not only to the other series but also to the llc as a whole.

In this way you can have superior asset protection (that you usually only have with a more sophisticated structure with a multiple-entity) but without the complexity of and without incurring the expenses of the legal, administrative and accounting aspects.

Depending on how many series there are within the delaware series llc, this incorporation structure can save you a significant amount of money just in start-up costs.

A delaware series llc is also easy to administer because, each series not being a separate entity, you can form and dissolve a series within the llc simply by amending the operating agreement. You don’t have to file anything extra at the offices of the state secretary.

Since the delaware series llc comes under Delaware law it permits you to have other assets like:
- boats
- horses
- airplanes
- vacation house
- etc.

Whereas the law in the other states where the delaware series llc can do business, only allows you to do any lawful business, the delaware series llc allows you not only to do any lawful business but also any lawful purpose or activity which could not be for profit. By putting these personal assets in an individual series you can insulate the liability which is associated with personal assets or activities which are high risk from your other personal assets or businesses.

There are also other sophisticated advantages you have if you form a delaware series llc, which are too detailed to be discussed in this short article.


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