Chicago Series LLC Formation Attorney

A Series LLC is a way for individuals that own several parcels of real property to hold all of those properties under the same umbrella while simultaneously providing tax and liability benefits to the owner and members of the Series LLC. A Series LLC is an option most often utilized as a management tool by individuals that own multiple properties. Whether or not a Series LLC is the best option for your business needs and goals is a matter that should be addressed with a Chicago Series LLC formation attorney that understands the benefits and disadvantages of these companies. 

The Difference Between an LLC and a Series LLC

A traditional LLC is a business type popular among investors in real property. It is a flexible company that offers its owner(s) protection from debt and lawsuits. It offers a shield of sorts around the owners to protect them from liability. However, if any part of that LLC owes a debt, all other parts of the LLC may be held liable for that debt as well. 

A Series LLC has one main, or Master, LLC with individual Series created under the Master. 

Each Series operates as its own business, with its own property, liabilities, and members. It is a very similar set-up to a corporation with subsidiaries. However, each Series created under the Master Series is treated as separate and distinct from the other Series, and is therefore afforded protection from the liabilities of the other Series. 

Chicago Series LLC Formation Attorney Outlines Benefits You Should Consider

There are definite benefits to creating a Series LLC when you own multiple properties. Some of them include:

• Cost Benefits: There are cost benefits to creating a Series LLC. When an investor is faced with creating multiple separate LLCs or establishing a Series LLC, the costs of initial setup as well as the mandatory filing of the annual report should be considered. A Series LLC is able to save investors significant financial resources over the creation of individual LLCs. 

• Tax Benefits: By default, a Series LLC is taxed as a partnership which means that income or loss will “pass through” the Series LLC to the members, and the Series LLC is not subject to double taxation. Also, a properly structured Series LLC allows for the consolidation of taxes and necessitates the filing of only one tax return. 

• Liability Protection: The most significant benefit of a Series LLC is the liability protection it affords. Each series in a Series LLC is protected from the debts and liabilities of every other series contained in the same Series LLC.

Consult with a Chicago Series LLC Formation Attorney

The creation of a Series LLC requires the guidance of an astute Chicago Series LLC formation attorney that understands how these special companies operate. To learn more about how a Series LLC can help you accomplish your professional goals, as well as more information about our Series LLC package at Enterprise Esquire, reach out to the Law Office of Alexis Hart McDowell to schedule a consultation.