Delaware LLC
If a business owner is personally sued and loses, the business owner’s LLC interest may be subject to attachment by the judgment creditor if the business was not formed as a Delaware LLC. A Delaware LLC is unlike the LLC of most states. By statute, a Delaware LLC limits the creditor to just a single […]
LLC
What is a Capital Contribution? A capital contribution refers to the cash or property that owners provide to their business. LLC members typically make initial capital contributions when opening the business and may contribute more throughout the company’s lifetime. Initial capital contributions often play a significant role in determining a member’s ownership percentage in an […]
Delaware Series LLC
Why the Delaware Series LLC Is Designed for Investment Companies The Delaware Series LLC is a good fit for investment companies because it offers flexibility and protection. Investment companies have engaged in segregating classes of assets into separate funds as far back as the mid 20th century. They first used vehicles known as statutory trusts. […]
Delaware Series LLC
Series LLC Record-Keeping Requirements Series LLC laws clearly outline the conditions for maintaining records of associated assets. The most important condition is that internal records effectively keep the assets of each protected series separate from one another. Records must objectively describe an asset, distinguishing it from those associated with other protected series, or the parent […]
Delaware Series LLC
What Is A South Dakota Series LLC? South Dakota used the Illinois Series LLC as the model for its own Series LLC law. The statute allows a Series LLC to own assets either in its own name, or through one of its protected series. South Dakota requires additional filings to be made in order to […]
Delaware Series LLC
Umbrella LLC Advantages: The business entity is already created; Lower overhead costs (one annual fee instead of multiple); Less oversight is required to keep assets separate since they are held within the same company; Having multiple “incubators” for business lines can accelerate innovation, experimentation, and growth through diversification; Better suited for activities that are low […]