Episode-06 LLC and Series LLC Protection
LLC or Series LLC Set Up, Articles of Organization and Operating Agreements:
LLC and Series LLCs for the most part are set up the same. The difference between a regular LLC and a Series LLC is that a series provides more asset protection because you can designate equipment, accounts or property into separate series that from a liability standpoint are separate from each other. It is like each series acts like is own LLC from a liability standpoint while only having once company to file with the State for licenses and only one tax return to file. It truly is the best of both worlds.
That being said the Series LLC may not be the end all be all. If you do a lot of business out of state it may not work because most states don’t recognize Series LLCs. Also, in some cases, including tax, it might make sense to separate the businesses out.
LLC’s in general are a great estate planning and asset protection tool. They are the most versatile of all of the entity structures because they can be taxed as a partnership or S-Corp while maintaining that vital Limited Liability to all of the partners. Hence the name Limited Liability Company.