What Is a Series LLC?

A Series LLC is a special type of limited liability company that allows a single parent LLC to create multiple internal "series" — each with its own assets, liabilities, and members. Each series operates as a legally separate unit, meaning creditors of one series generally cannot reach the assets of another series or the parent LLC. It was first authorized by Delaware in 1996 and has since been adopted by roughly 20 states.

A regular LLC is a single legal entity with one pool of assets and liabilities. A Series LLC contains multiple segregated series within one filing. Each series can own property, enter contracts, sue and be sued, and grant interests — all independently of the other series. You file one formation document with the state and create individual series via your operating agreement, rather than filing separate formation documents for each business unit.

It depends on how each series is taxed. If a series is a disregarded entity (single member), it may use the parent LLC EIN. If a series elects to be taxed as a partnership or corporation, it needs its own EIN. In practice, most attorneys and CPAs recommend obtaining a separate EIN for each active series to simplify banking, tax reporting, and liability separation. The IRS has not issued definitive guidance, so err on the side of separation.

Yes, but it can be challenging. Many banks are unfamiliar with the series LLC structure and may require you to open a full business account (with separate formation documents) for each series. Credit unions and business-focused banks tend to be more accommodating. Maintaining separate bank accounts for each series is critical — commingling funds across series undermines the liability isolation that makes the structure valuable.

This is the biggest risk. States that do not have series LLC statutes may not recognize the internal liability barriers between your series. If you are sued in a non-series state, a court could treat all series as a single entity and allow creditors to reach assets across series. If your business operates in multiple states, confirm that each state recognizes series liability isolation before relying on this structure.

Yes — real estate investors are the primary users of the Series LLC structure. By placing each property in its own series, a lawsuit related to one property (slip-and-fall, tenant dispute, environmental liability) is contained to that series. The other properties in other series are shielded. This achieves the same protection as forming a separate LLC for each property, but with one state filing and lower administrative overhead.

A Series LLC typically costs 60-70% less than forming equivalent separate LLCs. For example, forming 5 separate LLCs in Texas costs roughly $1,500 in state fees alone, plus 5 registered agent fees and 5 annual reports. A single Series LLC with 5 internal series costs $300 in state fees, one registered agent fee, and one annual report — with the series created via the operating agreement at no additional state cost.

Yes. Eleet AI provides LLC formation services in states that support the Series LLC structure, including Texas, Delaware, Nevada, Alabama, and Wyoming. We handle the state filing, provide a registered agent, and can connect you with attorneys who specialize in series LLC operating agreements. Contact us to discuss whether a Series LLC is right for your situation.