When you form a Missouri series LLC, you can form as many series within the Missouri series LLC as you want, all for the same filing fee. This is a great structure to accommodate a growing business. If you run out of series down the road, you just simply amend the articles of organization of the Missouri series LLC and the operating agreement of the Missouri series LLC to add more series.
Currently, each individual series within the LLC does not have to file taxes. The master LLC files on behalf of all the series that fall underneath its umbrella. Another benefit of creating a Series LLC is that you can create separate members and managers within each series and assign them different duties, powers, rights and percentages of ownership.
However, a Series LLC in Missouri isn’t a one-size-fits-all structure for all businesses. There are some risks associated with forming a Series LLC. For instance if you operate in a state that does not allow Series LLC there’s a chance your assets within them might not be protected. Regulations for the Series LLC vary from state to state and currently only 14 states allow them. Also, you must closely follow regulations with starting and operating a Series LLC in Missouri. If you’re not careful the Series won’t offer the protection you’re expecting.
Another aspect to be aware of is that each individual Series within your Series LLC must have its own bank account, since each is producing separate financial statements. This can be a complicated administrative issue depending on how many Series are within the Series LLC.
Lastly, since the Series LLC concept is rather new, there are some legal questions yet to be answered. For instance, how each individual Series would be handled in a bankruptcy or if a bankruptcy court will recognize the individuality of each different Series within the LLC.
Forming a Series LLC is worth careful consideration. If you’re contemplating forming a Series LLC in Missouri contact LexLaunch to talk through your options and get started protecting your assets today!