Can some one tell me a little more about Series LLC’s?
How are they set up?
Are they a good source of protection for holding rental properties?
In setting up a series of LLC, how do I add additional LLC’s or (rental properties) as I acquire them?
What kind of costs are there to get a Series started and then adding additional LLC’s?
Any help is appreciated.
Thanks, Joe
As a business entity, series LLCs are very flexible and simple to use. The series LLC can be used by real estate investors who own multiple properties. Each series isolates and protects its properties from the liabilities of the properties in other series. Companies with different profit centers can use series LLCs to segregate and shield each business operation.
To maintain the liability protection of each series it is important to treat each series as a separate company. This includes having a separate bank account, maintaining separate books and records, signing contracts using the name of the series, documenting all transactions, and keeping adequate amounts of capital on hand for business purposes.
excerpt from website:
http://www.nolo.com/legal-encyclopedia/what-is-series-llc.html