Delaware Series LLC
What Are Separate Series Agreements in a Series LLC? A Separate Series Agreement is essentially a mini-Operating Agreement for an individual protected series under a Series LLC. These Agreements are private contracts signed by the Members of a Series LLC who are also Members associated with that particular protected series. A Series LLC is able […]
Delaware Series LLC
What Is an Umbrella LLC, Exactly? An umbrella LLC is another word for a holding company. An umbrella LLC owns other LLCs that are below it, known as subsidiaries. It effectively shelters those LLCs from cross liability in the event that future litigation results in a judgment creditor trying to collect against assets of a […]
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 […]
Qualification
When Will South Dakota Form Series LLCs? The state legislature introduced South Dakota’s House Bill 1179 on January 30, 2020, containing authorization for Series LLCs. South Dakota’s Governor signed it into law on March 23rd. This amended §47-34A-101 et seq., of the South Dakota Uniform Limited Liability Company Act. Under the act, South Dakota will […]
Delaware Series LLC
When to Form a Series LLC When a traditional LLC begins to branch off and undertake new business ventures or operations, it faces the risk of having all of its assets become subject to the liabilities and creditors of its divisions. Before the birth of the Series LLC, the only option available to companies was […]
Series LLC
What Is a Quasi Entity? In order to understand what a quasi entity is, it’s important to first grasp what a Series LLC is. A Series LLC is a unique type of LLC where the Certificate of Formation allows it to “slice and dice” the LLC into an unlimited number of protected business units, each […]