What is a series LLC in Illinois?

What is a series LLC in Illinois?

A series LLC in Illinois is a special type of LLC that provides specific liability and tax benefits to its owners and members. The series LLC consists of a master LLC and one or more individual series that branch off from it.

Can you change an LLC to a series LLC in Illinois?

Previously established limited liability companies may also be converted to a Series LLC by filing an article of amendment with the Illinois Secretary of State along with the appropriate filing fee.

How much does a series LLC cost in Illinois?

The filing fee in Illinois for organizing a series LLC is $750,9 which is $250 more than for a regular LLC, and the filing fee for filing a Certificate of Designation creating a new series is $50. The total filing fee for forming an Illinois series LLC will be lower than the fees for forming separate LLCs.

Does Illinois require an LLC operating agreement?

An LLC operating agreement is not required in Illinois, but is highly advisable. This is an internal document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed.

What is the difference between an LLC and a Series LLC?

A series LLC is a regular business LLC that is set up to hold several properties or interests underneath one LLC. A restricted LLC, on the other hand, is a vehicle created to transfer assets within a family and is not meant for doing business.

How does a Series LLC work?

A Series LLC consists of the “parent” or “umbrella” LLC with one or more series that are established under the parent. Each series has characteristics that are separate from the Series LLC itself and every other series. Each series can have its own assets, members, managers, purpose, and investment objectives.

Can I turn an LLC into a series LLC?

Yes, an existing LLC can be converted to a series LLC. The process varies by state, depending on whether the jurisdiction recognizes series LLCs.

How does a series LLC work?

What is the point of a Series LLC?

With a Series LLC, a holding company can hold all individual businesses under a single umbrella while mitigating the risk of one business’ assets being used to satisfy the debts or liabilities incurred by another of its businesses.

Is a series LLC a good idea?

Advantages of a Series LLC for Real Estate Investments The series LLC structure can benefit real estate investors with multiple properties in several ways. By setting up each property as its own series in a series LLC, investors can: Reduce liability – If one series gets sued, other series aren’t liable.

How do I add a series to my LLC?

SET UP YOUR SERIES LLC

1. STEP 1: NAME YOUR SERIES LLC. Series LLC naming rules vary from state to state.
2. STEP 2: CHOOSE A REGISTERED AGENT. A registered agent is a person or business that sends and receives legal papers on your behalf.
3. STEP 3: DOCUMENT YOUR SERIES LLC.
4. STEP 4: CREATE A SERIES LLC OPERATING AGREEMENT.

Is there a difference between an LLC and a series LLC?

A series LLC is a regular business LLC that is set up to hold several properties or interests underneath one LLC. A series LLC can make distributions as allowed by state law. A restricted LLC, on the other hand, is a vehicle created to transfer assets within a family and is not meant for doing business.

When did series LLC become legal in Illinois?

The Illinois Secretary of State regards a series LLC as one entity filing a single annual report and paying a single fee. On August 16, 2005, the Series LLC Statute (805 ILCS 180/37-40) was added to Illinois’ Limited Liability Company Act, making the state the fifth in the country to allow the formation of series LLCs.

What kind of company is a series LLC?

A Series LLC is a special type of limited liability company consisting of a parent LLC and one or more divisions within itself, called “series,” that can have separate assets, finances, business purposes, and limited liability.

Can a series LLC lose its liability protection?

However, the same commingling may cause a series entity in a series LLC to lose its liability protection. Many business owners simply choose to form a series LLC, rather than individual LLCs, to avoid multiple filing fees. You’ll pay one filing fee for the series LLC and then create your series under the master LLC.

Can a series LLC be registered in another state?

No. Your Series LLC’s Illinois registered agent should be the registered agent for each individual series within your Series LLC. If your Illinois Series LLC registers as a foreign entity in another state, however, you will need to appoint a registered agent in that state as well.