In this article, we’re explaining how to create a Series LLC. Importantly, a Series LLC is a type of LLC that allows you to separate assets and responsibilities.
We will be explaining the step-by-step process to create a Series LLC below along with answers to common questions that we receive about Series LLCs from our members.
This article is part of our free series on US LLCs, including the steps for opening a business bank account for an LLC, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Create Series LLC
- How Do I Add a Series to My LLC?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Create a Series LLC
To create a Series LLC, you will need to appoint a registered agent and complete a Series LLC registration process. The registration process for a Series Limited Liability Company requires you to select a name for the Series LLC, meet jurisdictions-specific requirements for a Series LLC, and create a Series LLC operating agreement.
That said, after completing Series LLC formation, there may be ongoing Series LLC taxation, reporting, and legal requirements that you need to fulfill depending on the activities of the LLC and the jurisdiction of the formation.
It’s important to note that there are downsides to forming a Series LLC. In particular, the challenges of operating, maintaining, and meeting specific requirements like taxation, and how potential legal disputes could impact the overall structure.
With this in mind, if you are considering forming a Series LLC, you should consult a professional advisor prior to forming a Series LLC to ensure it’s the right choice for your needs.
In the next section, we’ll look at how to start a Series LLC, the advantages of a Series LLC, and the specific instances where Series LLCs are commonly used.
How Do I Add a Series to My LLC?
If you have an LLC structure and want to add a series to your LLC, this is an option in certain states. In most cases, this is down for LLC asset protection and to obtain other Series LLC benefits.
Create a Series LLC Name
The first step in creating a Series LLC is selecting a name for the entity. Like a standard LLC, there are specific parameters that need to be met, including that the name is unique and includes an identifier like LLC.
That said, while many other sources specify that a Series LLC includes the word “Series” in the name, or reference to the parent, or other naming features that distinguish it as a Series LLC, this isn’t always the case. In fact, depending on which jurisdiction you use to form a Series LLC, there may be no naming parameters at all.
However, in most cases, it is best practice to use a unique identifier in order to distinguish the structure beyond referencing it as a series in the LLC formation documents.
Appoint a Registered Agent
Like registering a regular LLC, you will also need to appoint a registered agent in the state of formation. The registered agent will be responsible for coordinating with that State, maintaining required records, and acting as an official point of contact for formal correspondence. On the other hand, if you are a resident of the State where you plan to register the LLC, you will be able to act as your own registered agent if you choose.
File Your Series LLC Articles of Organization
Your Series LLC, like a standard LLC, will need articles of organization. The filing of the articles of organization for your Series LLC marks the official registration of the LLC with the state. Additionally, the articles of organization also outline the rights, duties, and liabilities of the members of the LLC.
Form Your Series LLC Operating Agreement
Your Series LLC operating agreement outlines the ownership structure and roles of the members. This is an important document that is required when forming an LLC. Not surprisingly, most individuals choose to use templatized LLC operating agreements, which your registered agent will help you complete.
Apply for an EIN With the IRS
After the registration of your Series LLC is complete, the owners need to decide whether they will obtain a single EIN for the entire LLC or unique EINs for each individual Series. In either case, obtaining an EIN is an important step in LLC formation as it allows the LLC to meet all of their taxation and reporting requirements. Additionally, an EIN is required in order to open bank accounts for your LLC.
Open a Bank Account For Your Series LLC
If you plan on using your Series LLC for any transactional activities, you will need to open a bank account. If you are a local resident with existing banking relationships, this is a straightforward process. However, if you are looking to register a Series LLC as a non-resident, you will have far fewer banking options available to you.
If you are looking to open a US bank account for LLCs as a foreign non-resident, our dedicated US bank account opening solution, GlobalBanks USA, is what you’ve been looking for.
Acquire Business Licenses and Permits
Of course, if you plan on engaging in any licensed or regulated activities, you will need to obtain the relevant licenses and permits in the state of operation. Likewise, depending on where you register the LLC, there may be additional licensing requirements for you to consider. Not surprisingly, this is one of the many factors you should consider before deciding where to form your LLC.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into what create series LLC is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is a Series LLC?
A Series LLC is a Limited Liability Company (LLC) that is made up of a parent LLC along with multiple child LLCs. Series LLCs are commonly used as a cost-effective way to obtain asset protection.
Is a Series LLC a Good Idea?
A Series LLC can be a good idea if you have a specific need for registering multiple entities under one umbrella, desire the asset protection and other benefits that a Series LLC offers, and have compared it to the other structuring options that are available to you.
What Is the Disadvantage of a Series LLC?
The main disadvantage of a Series LLC is the complexities associated with operating and maintaining this type of entity. In addition to requiring separate banking and accounting, there are also complications with taxation, legal disputes, and more. Needless to say, if you are considering a Series LLC for your formation needs, you should consult a professional to make sure that a Series LLC is the right choice for you.
Do You Want Help Opening a US Bank Account?
If so, you can get access to GlobalBanks USA (our dedicated US account opening service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate US account opening.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
Use the link in our menu above to learn more about GlobalBanks USA. Or, contact us directly with any questions!