Race to the Bottom
There’s been growing interest in the Series LLC. The Series LLC provides the type of flexibility that real estate investors and angel investors might find particularly attractive.
Although there are some risks and uncertainties relating to the Series LLC, the Series LLC is a powerful tool to create a series of limited liability companies in a single vehicle.
Just like a traditional LLC, e.g.:
IF the series LLC is organized properly you can take advantage of a centralized management structure and have an extra layer of liability protection.
This layer is created when the larger entity is set up (“umbrella”) and comprised of a series of subsidiary membership interest (“cell”), each with distinct names and separate books.
The subsidiary members function as separate and distinct member-managed cells within the larger LLC entity. Done correctly, a “series” structure provides an extra layer of liability protection:
Delaware, Washington, D.C. and roughly fourteen other states have enacted state statutes that enable an LLC to be created via a discrete series of membership interests.
Here’s a visual for good measure.