Series limited liability companies have become popular in recent years, and are now used in a variety of businesses to separate assets and reduce risk. A Series LLC is a form of LLC that has a master component and separate units (or series). These units allow for differentiation of members, managers or assets within a larger ownership group. For real estate investors, this means that each individual property could remain held by a separate legal entity within a larger business structure without requiring bank accounts and tax returns for each individual property.  How can real estate investors benefit from a Series LLC? Read on!

  • If Series LLCs are set up correctly, the business enjoys liability protection between each unit of the of corporation. You can drop one or more properties into each series and receive protection. Creditors from Property A can’t come after the assets in Property B, and so on. However, each unit must be properly documented, with its own Operating Agreement, Tax ID and all other requirements. Because of the knowledge needed to set up this type of LLC, we recommend hiring an attorney instead of trying to do it yourself.
  • State filing fees vary from state to state. In Missouri, instead of multiple fees to set up each LLC, a Series LLC requires a single fee, no matter how many units you set up for your company. This alone can make a Series LLC a great idea for your company.  In Kansas, filing fees are a bit higher and there is an additional fee for each series.  However, when the Kansas filing fee comes around, the Series is treated as one entity, so you only have to file and pay for one company.
  • Once the main LLC is created, adding units is easy. We encourage you to add them in bulk for cost savings in anticipation of expected growth. The process is similar to setting up a new LLC, but is only an amendment to your existing Series structure, which does reduce the filing fee.

Series LLCs are a unique type of distinction, and need to be set up correctly to ensure that your company is best protected from risk. At LexLaunch.Com, we are skilled in setting up Series LLCs and would love to talk more about how they could work for your company. We offer Series LLC creation that is less expensive than our typical hourly attorney fees.  Learn more about our services and how we can help your business by calling 816-434-6610 or click here for more information.