What is a series LLC?

A series LLC is a special type of LLC that allows you to create multiple internal 'series' (sub-LLCs) under one parent entity, where each series has its own assets, members, and liability protection — without filing separate formation documents for each. Only 19 states currently authorize series LLCs, with Delaware, Wyoming, and Nevada being the most popular.

Each series within a series LLC operates as a separate liability shield: debts and lawsuits against one series cannot reach the assets of other series or the parent LLC. This makes series LLCs popular for real estate investors (one series per property), franchise operators, and holding companies. Advantages: lower formation costs (one filing fee covers all series), simplified management, and consolidated tax filing. Disadvantages: not recognized in all states (creating uncertainty for interstate operations), limited case law, some banks refuse to open accounts for individual series, and the IRS has not issued definitive guidance on series LLC taxation.