Series LLC: Run Multiple Businesses Under One Filing

Operate multiple businesses with separate liability under a single series LLC filing. Covers eligible states, costs, banking, and limitations.

By Omer Aydin · 2026-08-19

A series LLC for multiple businesses allows entrepreneurs to create separate "cells" or "series" within a single LLC, each with its own assets, liabilities, members, and purpose, without filing (or paying for) separate entities for each business line. If you run an e-commerce store, a consulting practice, and a rental property portfolio, a series LLC can isolate the liability of each venture while maintaining one state filing, one registered agent, and one annual report.

The concept is powerful but comes with significant limitations that most online guides gloss over. This article covers which states recognize series LLCs, when the structure makes sense versus forming separate entities, and the banking and tax complications that catch founders off guard.

How a series LLC works

Think of a series LLC as a parent company with built-in subsidiaries. The "master" or "parent" LLC is the entity filed with the state. Each "series" or "cell" operates as a legally distinct unit:

Aspect	Traditional Separate LLCs	Series LLC
State filings	One per entity	One total
Filing fees	$100 to $500 per entity	$100 to $500 total
Annual reports	One per entity	One total (in most states)
Registered agents	One per entity	One total
Liability separation	Automatic	Yes, if properly maintained
Bank accounts	One per entity	One per series (theoretically)
EINs	One per entity	One per series (recommended)
Tax returns	One per entity	Unclear (IRS has not issued final guidance)

Which states recognize series LLCs?

Not all states have series LLC legislation. As of 2026, the following states authorize series LLCs:

Full statutory support: Delaware, Illinois, Iowa, Nevada, Oklahoma, Tennessee, Texas, Utah, Wyoming

Limited or newer legislation: Alabama, Arkansas, District of Columbia, Indiana, Kansas, Missouri, Montana, Nebraska, North Dakota, Virginia, Wisconsin

Do not recognize: California, New York, Florida, and most other states

The critical problem: if you form a series LLC in Delaware but operate in California, California may not respect the internal liability shields between series. This means a creditor in California could potentially reach assets in Series B to satisfy a debt of Series A.

When should a founder use a series LLC instead of forming separate entities?

A series LLC makes financial sense when you operate three or more distinct business lines in a state that fully recognizes the structure, and the primary goal is reducing administrative overhead and filing costs. The savings compound with each additional series: forming five separate Wyoming LLCs costs $500 in filing fees plus five registered agents ($395/year with Lovie); a single series LLC costs $100 plus one registered agent ($79/year).

• Ideal for real estate investors holding multiple rental properties in the same state
• Suitable for e-commerce operators running multiple brands with distinct inventory and liability profiles
• Appropriate for holding companies managing separate intellectual property portfolios
• Not ideal when series operate in different states that don't recognize the structure

The banking problem

This is where series LLCs create the most friction. Most US banks do not understand series LLC structures and either:

1. Refuse to open separate accounts for individual series — treating the entire structure as one entity
2. Require a separate EIN for each series — which partially defeats the administrative simplicity
3. Commingle funds across series — destroying the liability separation you created the structure to achieve

Mercury, Relay, and most fintech banks will open an account for the master LLC but may not support sub-accounts mapped to individual series. Traditional banks vary by branch and banker familiarity.

Best practice: Obtain a separate EIN for each series and open a dedicated bank account for each. Yes, this adds complexity, but without financial separation, courts may "pierce" the series veil and treat all assets as belonging to one entity.

Tax treatment: the IRS gray area

The IRS has proposed (but never finalized) regulations on series LLC taxation. The current practical reality:

• Single-member series (one owner per series): each series is likely treated as a disregarded entity, reported on the owner's Schedule C
• Multi-member series: each series is likely treated as a separate partnership, requiring its own Form 1065
• Series electing corporate treatment: each series files its own Form 1120 or 1120-S

Because final regulations don't exist, tax preparers take varying positions. Consult a CPA familiar with series LLC structures in your state.

Formation steps (Wyoming example)

Step 1: File Articles of Organization with series provision

Wyoming's Articles must include a specific statement that the LLC may establish one or more series. Without this language, the liability shields between series are not activated.

Step 2: Create a master operating agreement

The master operating agreement establishes the framework for creating series, including:

• How new series are established (member vote, manager decision)
• What constitutes a series (separate name, purpose, assets, members)
• Record-keeping requirements for each series

Step 3: Establish individual series

Each series is created by an internal document (series designation or series operating agreement) that identifies:

• Series name (e.g., "ABC Holdings LLC — Series 1: E-Commerce")
• Members and their interests in that specific series
• Assets allocated to that series
• Purpose and business activity

Step 4: Maintain separation

The liability shield between series only holds if you maintain strict separation:

• Separate bank accounts per series
• Separate books and records per series
• No commingling of funds between series
• Clear identification of which series owns which assets

Lovie's formation platform supports series LLC formation in Wyoming and Delaware, automatically generating the master operating agreement with series provisions and individual series designations for each business line.

When to use separate LLCs instead

A series LLC is not the right choice when:

1. You operate in states that don't recognize the structure — liability shields may not hold
2. You plan to sell one business line independently — selling a series is legally complex; selling a standalone LLC is straightforward
3. You need separate investors for each venture — equity structures within series are complicated
4. You want maximum legal certainty — separate LLCs have decades of case law; series LLCs have limited judicial precedent

For founders with one or two business lines, forming separate LLCs through Lovie's entity management tools is simpler, more portable, and legally safer.

FAQ

Can I convert existing separate LLCs into a series LLC?

Technically yes, but it requires dissolving the existing LLCs and transferring their assets into series of a new master LLC. This may trigger tax events, require contract reassignment, and complicate existing bank relationships. In most cases, it is simpler to keep existing LLCs and use a series structure only for new ventures.

Does each series need its own EIN?

The IRS has not issued definitive guidance. However, best practice (and what most banks require) is a separate EIN per series. This ensures proper tax reporting and maintains the financial separation that supports the liability shield.

How many series can one LLC have?

There is no statutory limit in any state. You can create as many series as your business requires. However, administrative complexity increases with each series, and at some point (typically 10+ series), the overhead approaches what separate LLCs would cost.

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External reference: Delaware Code Title 6, Chapter 18, Subchapter IX — Protected Series

Form your company with Lovie — $29 one-time + state fees; registered agent $79/year.

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