Nevada is one of the few states that permits the formation of a series limited liability company. A “Series LLC” is a simplified and cost-effective way to manage more than one limited liability company. In order to form a Series LLC, the applicant files the Articles of Organization for one “Series” LLC with the Nevada Secretary of State. Each series, or separate limited liability company, is then formed by way of the terms of the Operating Agreement. Therefore, you may have, for example, ten limited liability companies under the formation of a single Series LLC. Under Nevada law, a creditor may only reach the assets of the individual Series LLC who is liable to the creditor, and the other companies in the series are protected.
In addition, a Series LLC cuts costs with regard to annual filing fees for the initial list ($125) and state business license ($200). Instead of paying $3,250 for 10 limited liability companies each year, you will pay $325 for 10 series limited liability companies. The Series LLC is popular with individuals who own several rental properties. Contact Johnson Law Practice today to determine whether a Series LLC is right for you.[This blog is for informational purposes only and is not intended to create an attorney-client relationship. If you have questions regarding your own specific circumstances, please contact me or another attorney.]