Terrell, TX asked in Business Law for Texas

Q: What is a series LLC and what filing is required?

Related Topics:
1 Lawyer Answer
Douglas J. Shumway
Douglas J. Shumway
  • Salt Lake City, UT
  • Licensed in Texas

A: This is a wonderful question! A series LLC is a new type of entity that allows for essentially an internal umbrella setup without the need to form multiple companies and still allows for limitation of liability and obligations on a sub-LLC level. In other words, you get your LLC cake and get to eat it too. The IRS and a few courts have caused problems for early adopters of the Series LLC structure and it will likely take years and years to work things out in a satisfactory manner. Some attorneys are recommending that their clients utilize them, I am not. There is potentially a lot of risk that would be difficult to convey to a client in any meaningful way so rather than get sued for malpractice, many attorneys are staying pretty far away from these. Most states that offer such a structure also have forms that can be obtained on their websites. Always consult with an attorney prior to moving ahead with any entity formation, especially if you plan on using a Series LLC. The foregoing answer is provided by Douglas J Shumway, Esq.: (801) 478-8080. The answer provided is not intended to form an attorney client relationship and should not be construed as legal advice. Mr. Shumway is licensed only in Utah. Mr. Shumway's law firm has offices in Salt Lake City, San Antonio and Las Vegas.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.