What is series in real estate?

For those unfamiliar with a Series LLC, think of it as one company with multiple subsidiaries. Each subsidiary operates as a separate entity with a unique name, bank account and separate books and records, separate liabilities, and possibly even different owners and or managers.

How does a series LLC work in Nevada?

The series LLC requires only one initial filing fee and one annual fee for the entire series. The series LLC offers liability protection to each series. In other words, the debts, obligations and expenses incurred by one series are not enforceable against the assets of any other series or the container LLC.

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What is an LLC series in Illinois?

Generally, a Series LLC is a limited liability company that has separate “mini-LLCs” within the larger entity, each with separate members, managers, assets and liabilities, and business interests. The LLC itself, and not the individual series, is now treated as the legal entity under Illinois law.

What is series in real estate? – Related Questions

Does a Series LLC need its own EIN in Illinois?

EIN. Both the Master as well as each series will also need its own tax ID number or EIN. Each series will have a Certificate of Designation. The Master LLC will also need an Operating Agreement and you will have to determine whether each series will need its own operating agreement.

Does a Series LLC need its own EIN?

All LLCs are required to have an EIN — it’s worth exploring whether a single EIN for your overall series LLC and the individual businesses underneath it is best, or if you should get an EIN for every business you manage.

What is the difference between a standard LLC and Series LLC in Illinois?

A Series LLC must first file Articles of Organization with the Illinois Secretary of State (Form LLC-5.5(S)) just as a standard LLC does. The only difference is the filing fee ($400 instead of $150) and an additional provision that must be added to the Series Articles of Organization.

What is the difference between an LLC and a Series LLC?

A series LLC is a group of LLCs which are owned in a tiered-down structure. The top tier LLC owns the lower-tiered LLCs. Each LLC has assets separate from the others, while the main LLC controls all the LLCs in the series. Each unit has its own owners (members) and is liable only for its own debts and obligations.

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What is the purpose of a Series LLC?

With a Series LLC, a holding company can hold all individual businesses under a single umbrella while mitigating the risk of one business’ assets being used to satisfy the debts or liabilities incurred by another of its businesses.

Can you convert an LLC to a Series LLC in Illinois?

Previously established limited liability companies may also be converted to a Series LLC by filing an article of amendment with the Illinois Secretary of State along with the appropriate filing fee.

How are Series LLC taxed?

A series LLC is taxed just like a traditional LLC, on a single federal tax return and as a pass-through entity. Because a series LLC is a state business designation, state taxes will vary from state to state.

How do you name a Series LLC?

Practical Guidance on Series Names
  1. The name of the series must begin or end with the name of the parent LLC, including any word or abbreviation required by the applicable LLC name statute; and.
  2. The name of the series must contain the phrase “Protected Series” or “protected series” or the abbreviation “P.S.” or “PS.”

How do I start a Series LLC in Illinois?

How to Start an Illinois Series LLC
  1. Understand the Illinois Series LLC.
  2. Submit IL Series LLC Articles of Organization.
  3. Submit Certificates of Designation.
  4. Create an IL Series LLC Operating Agreement.
  5. Get Federal EINs from the IRS.
  6. Open bank accounts for your Series LLC.
  7. Obtain any required business licenses.

Can you be your own registered agent in Illinois?

Yes, you can be your own registered agent in Illinois. However, after considering the registered agent requirements most business owners elect to hire a registered agent service instead.

How much does an LLC cost in Illinois?

Is a Series LLC a holding company?

A holding company doesn’t actively operate businesses—it simply exists and owns. As a series LLC, the holding company would own all of the individual series beneath its umbrella. Real estate investors with multiple properties sometimes form series LLCs to isolate liability.

Can a series LLC have different owners?

A series LLC may have different members and managers in each series. The rights and obligations of these members and managers differ from series to series. Each series may enter into contracts, sue or be sued, and hold title to real and personal property.

Is a series LLC a separate legal entity?

The instructions to Form 313 states: “A series limited liability company that is treated as a single legal entity under the laws of its jurisdiction of organization is treated as a single legal entity for purposes of registration.

What is a protected series LLC?

A protected series LLC has both “horizontal” liability shields as well as the standard “vertical” liability shield. The “horizontal” shields protect each protected series (and its assets) from automatic, vicarious liability for the debts of the company and for the debts of any other protected series of the company.

What is the difference between a protected series and a Registered series?

As mentioned above, Protected Series LLCs are able to form a new series with a change of operating agreement while a Registered Series LLC must submit a new filing to the state of Delaware. Each series operates as a separate entity. This means each will have its own name, bank account, records, books, etc.

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