Are You Seeking a Delaware LLC Series Formation Solution? If you want a cost-efficient way of consolidating all your operations under one roof without incurring multiple state fees, forming a Delaware LLC series could be your answer.
Delaware series LLCs allow you to form multiple “mini-LLCs”, each with its own set of assets, purposes, business objectives, members or classes of members and ownership interests.
Liability protection
If you own multiple properties or brands, a Delaware LLC series could be useful in protecting both assets and liabilities of your main company. This entity allows for asset protection while still remaining flexible enough for future growth opportunities.
An LLC provides limited protection from creditors taking measures against personal assets like your car and bank accounts should your business be sued; however, its liability protections are less comprehensive than that offered by standard limited liability companies.
Delaware series LLCs can also be cost-effective to maintain. You only need to pay one state filing fee and annual registered agent fee per company to keep things running smoothly.
Delaware is an excellent location to establish a series LLC due to its low filing fees, business-friendly courts, innovative laws and established legal precedent. Furthermore, Delaware boasts a high compliance rate with tax laws making it a popular choice among entrepreneurs.
Taxation
If you’re seeking to streamline the structure of your business and protect itself from liability exposure, a Delaware LLC series might be an ideal solution. This entity type offers flexibility and benefits not available through other forms of business organization.
However, this type of business structure does have its downsides. One such drawback is finding accountants and attorneys familiar with its unique structure.
The Delaware LLC statute is one of the more complicated in the country and can be difficult for those unfamiliar with business law to navigate on their own. Therefore, when setting up this type of company structure it’s wise to consult an experienced attorney or accountant.
One drawback of a series LLC is that each series must obtain its own federal Employer Identification Number (EIN), creating more complexity when reporting and managing taxes, especially for newcomers to business.
Management
Delaware was the first state to allow Series LLCs, an innovative concept which allows one LLC to form separate units under its umbrella that can possess distinct assets and incur specific liabilities while working toward specific business goals.
Each series within a Delaware LLC can have its own managers, manager compensation packages, profit distributions and voting rights – and it may even remain autonomous from other series and from its parent LLC.
A series may maintain its own financial records, bank accounts and accounting systems as well as having its own Employer Identification Number or EIN.
Delaware LLC Series provide asset separation without incurring the costs and inefficiencies associated with multiple entities, making it ideal for real estate investors who require multiple titleholder series under one limited liability company umbrella.
Delaware series LLCs feature low filing fees and require only one franchise tax payment, making this option even more cost-effective and helping your business expand.
Reliability
Delaware LLCs provide some level of liability protection that many small business owners appreciate, yet the risk of lawsuit can still be high, especially for owners who own multiple parcels of real estate or multiple forms of business assets.
Delaware has made life simpler for small businesses by providing a streamlined process for creating multiple limited liability companies (LLCs). The Delaware Series has quickly become popular among those seeking to expand their company footprint or remain ahead of competition; therefore, before going forward alone it would be wise to consult a qualified professional before diving in head first.
