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Operating Agreement Series Llc

The LLC series was first launched by Delaware in 1996. The concept was derived from the Delaware Legal Trust Act, which was particularly popular with investment funds. Under the Legal Trust Act, an investment company could be created as a trust company with separate series. Each series could have its own portfolio with different investors, investment strategies, etc. When the LLC series became an option, it allowed investment funds to use the LLC – a more flexible vehicle than the legal trust. Although this began as well, an LLC series can be used for many purposes beyond the creation of investment funds. There are three fundamental approaches that states take to form a series. In some states, the series is included in the LLC Series operating contract. No deposit is required.

In other countries, a series consists of filing a document, such as a certificate. B designation or registration certificate with the national filing body. Delaware takes a third approach. It has two types of series – “protected series” that are required in the LLC agreement without deposit, and “registered series” that require the filing of a registration certificate with the Delaware Secretary of State. In addition, the tax treatment of U.S. states for individual series is not safe. The most important thing is that the SLLC offers your customers significant liability protection. As a company with subsidiaries, the assets of a company are protected from the liability risks of other LLCs under Master SLLC – without paying the additional creative fees. If your client creates an LLC series, they only pay a registration fee for training, regardless of the number of LLCs trained under the master`s degree. And like regular LCs, standard LCs are more flexible and easier to model than a business. b) The majority of voting units control the administration of the ranks. Standard LCs can also be a useful tool for real estate investors who own multiple properties.

In this scenario, each property may be associated with a separate series within the LLC series. If a series is involved in litigation, for example. B hazardous waste found there, series assets related to other real estate cannot be used to finance repair costs. That`s the theory. Perhaps the most important provisions of Series LLC`s statutes are those that determine what needs to be done for a series to have that liability protection.