What is a Series LLC?

The State of Illinois allows for registration of a Series LLC if you are planning to incorporate many Illinois companies as LLC’s. Primarily, the main benefit is saving some money if you want to have many LLC’s branched off under one main company.

Here is a definition of a series LLC from Wikipedia:

A series limited liability company, commonly known as a series LLC, is a special form of a limited liability company that provides liability protection across multiple “series” each of which is theoretically protected from liabilities arising from the other series.[1] In overall structure, the series LLC is comparable to a corporation with several subsidiaries.

More on series LLC’s from “Why Use a Series LLC” at Ezinearticles.com…

In order to create a series LLC, special language must be included in the Articles of Organization, which is filed with the Illinois Secretary of State. A Certificate of Designation for each series apart of the LLC must also be filed with the Articles of Organization.

But keep in mind, obtaining and preserving separate liability status requires that each series be operated as a separate entity. This means separate records should be kept for each series, with the assets of each series identified. Unfortunately, case law is largely undeveloped for the series LLC structure. This is especially true in Illinois. Without the benefit of judicial decision, many facets of the new series LLC legislation may be subject to reasonable difference in interpretation. For instance, some practitioners have argued that it is safe practice to provide each series with a separate bank account.

If you’re planning on forming an Illinois series LLC we think it’s best to contact an Illinois lawyer familiar with the process and all the legal intricacies involved. You can return here to this site to file your initial series LLC and save a couple hundred or maybe thousands of dollars off lawyer fees so be careful not to agree to process the registration of your LLC with the lawyer.

More LLC information:

LLC Advantages and Disadvantages – There are many advantages and some disadvantages you should be aware of…

What is a LLC? – LLC incorporation has become a very popular form of incorporation over the years….

Incorporate your LLC now using our online form.