What is a Series LLC in Illinois?

Why Forming a Series LLC Could Help Your Real Estate Business

Updated on:
November 9, 2018

In this article, we will explain what the benefits are of forming an LLC for your real estate investment business.  We will cover topics including “What is a Series LLC?”, “How will a Series LLC Affect my Real Estate Business?”, and “What are the Negatives of a Series LLC?”  


“What is a Series LLC?”

A Series LLC is a business formation option that is built for business owners with multiple enterprises.  It is cost effective and allows for each enterprise to operate separately.  It is designed to protect the separate entities from risk and allow change more easily compared to other business formation plans.  Each entry in the series LLC can function independently from the others, with their own hierarchy of management and their own ownership of property.  

For a more detailed explanation of a Series LLC, read our articles "What is a Series LLC?"


“How will a Series LLC Affect my Real Estate Business?”

A Series LLC is popular among real estate investors.  It is especially cost effective and streamlined, allowing for one registered agent to represent the entire LLC.  Each entry can keep separate books with separate management, allowing for each entry to act as almost its own company within the larger company.  A Series LLC can be very helpful for Real Estate in particular as they may own several properties.  With a Series LLC, real estate investors can keep the properties of each individual entry separate from each other.  Real estate investors often benefit from the protections that come with separating property.  These protections will stop the failings or struggles of one property from affecting the others.  For example, if a tenant and a landlord get in a legal conflict at one property, the results that case - legally and financially - will not have any effect on other properties owned by the LLC.  Liability insurance is an important addition to a business, however it does not have the wide scope of protection that an LLC can offer and may be subject to limitations on certain areas.


What are the Negatives of a Series LLC?

Just like a new piece of Real Estate, a Series LLC can come with its share of problems.  Series LLC laws are highly versatile by state, meaning the protections offered and specificity varies significantly by state.  Some states do not even allow Series LLC formations at all. If you are looking to form a Series LLC, you may benefit from consulting with a business attorney to guide you through the local laws and assure you are completing the legal movements properly.  The formation is also fairly new and is still developing, so the laws around Series LLC’s will surely change as they find their formation.  Because of the changing laws and the inconsistency between states, business taxes may be complex with a series LLC.  You may benefit from contacting a business attorney or tax attorney in your state ahead of filling your taxes on your Series LLC.  


To learn more about moving your LLC between state lines, see our article “How to Movie Your Corporation or LLC to a Different State


Presented By O'Flaherty Law

O'Flaherty Law is happy to meet with you by phone or at our offices in Downers Grove, Elmhurst, Naperville, St. Charles, Lake in the Hills and Tinley Park, Illinois.

What to Expect From a Consultation

The purpose of a free consultation is to determine whether our firm is a good fit for your legal needs. Although we often discuss expected results and costs, our attorneys do not give legal advice unless and until you choose to retain us. Although most consultations are complimentary, some may carry a charge depending on the type of matter and meeting location.

Leave a Comment With Your Questions

Read more about

Franchise Law

Why Forming a Series LLC Could Help Your Real Estate Business
Disclaimer: Our articles and comment responses do not constitute legal advice and are not intended to create an attorney-client relationship.

Please contact us to schedule a free consultation for legal advice specific to your situation.

What are the Negatives of a Series LLC in Illinois?Series LLC Formation in IllinoisReal Estate Business Help in IllinoisShould I form an LLC for my business in Illinois?Series LLC Explained in IllinoisWhat are the Pros and Cons of a Series LLC in Illinois?

Subscribe to our mailing list

* indicates required

Here are some articles that may interest you

Categories