This blog has previously addressed the Nevada Series LLC, a unique type of business entity that affords limited liability protections to sub-entities (or series) under the umbrella of singular Secretary of State filings by the “mothership” entity. As previously described, Nevada is one of a very few states in the country that allows the formation of the Series LLC. That being said, what types of businesses are appropriate for the formation of a Series LLC? Typically, the Series LLC is ideal for holding companies – especially for real estate holdings. Under these circumstances, an entity that owned five (5) real estate parcels could form a Series LLC, placing each parcel in its own series, thereby providing limited liability protection per parcel. For example, if someone was injured on parcel 1, that party’s remedy would be against the series that owned parcel 1, rather than against the umbrella entity. In other words, although the five (5) parcels all fall under the singular Secretary of State filings of the umbrella entity, the injured party cannot look to the other four (4) parcels as assets from which a judgment might be satisfied.
There may be other business types suitable for the use of a Series LLC as well. As always, it is best to consult with your Nevada business attorney prior to making the entity formation choice.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
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