Delaware Series LLC - good idea?

General Real Estate Investing
1

I searched the forum but didn’t find anything on this. As I understand it one can form what is called a “Series LLC” in Delaware and place a number of properties in the LLC, EACH of which is legally discrete - if a tenant sues one property the assets of the others cannot be touched, even though they are held in the same LLC. This avoids the cost of forming a number of LLCs.

Does anyone know much about this? How long has this been available? Have the courts upheld it’s validity? Has anyone been successful legally in breaching the “firewalls” between the separate assets in the LLC? Thanks. Bob

2

It’s untested in courts, which means avoid them. There is CA case law, however. Each series will be taxed as an individual LLC and will be liable for the obligations of the other series.