Nevada is one of the few states to allow the formation of an “LLC series.” The LLC Series is a unique and flexible form of a limited liability company (LLC). The LLC series begins with the creation of a “container” LLC. The LLC container is set up to house different units or “series” without requiring additional registrations with the Secretary of State. To achieve optimal results, each series within the LLC container should operate independently and maintain separate books, records, bank accounts, enterprise agreements, etc. A private company has a production business with its own fleet of trucks and retail stores to sell its products. An accident involving one of the transport vehicles, on the production surface or in the retail trade may expose the whole company to liability. The creation of an LLC series for each part of the business limits liability to this section. The transport aspect is held in one sector, production sites in another and retail in a third sector. If a person has an accident with one of these services, they can only sue that department and not the entire company. In general, the name of your LLC series must contain a corporate name such as “Limited Liability Company,” “LLC” or “L.L.C.” (although the term “series” does not have to appear in the name), the rules for the designation of the different series vary from one Land to another. An effective strategy is to include the name of your LLC series at the beginning of the name of each series to clarify the relationship between different organizations. The assets in each series, also known as divisions, are protected from the principal LLC`s commitments as well as other series or divisions.
The structure of an LLC series is therefore very different from that of a traditional LLC. This type of limited liability social structure is a rather unusual option for businesses due to the lack of clear guidelines from judicial, legislative and regulatory authorities. The outlook is changing now that the IRS has proposed regulations indicating that the IRS considers a limited liability corporation to be a legitimate structure. There are provisions for the registration of the LLC series in the Nevada Revised Statutes, as seen in NV Rev Stat No. 86.296 and NRS 86.296 (3), but there are not enough details about their operations. This is mainly due to the fact that they are considered to be in their legal phase and have only been adopted in one third of the countries. Now that you know what an LLC series is, what`s different about a normal LLC? One of the biggest differences between these two types of LC is that a limited liability company allows you to separate or separate your assets. As a result, this form of limited liability company provides a company with the best possible financial protection in Nevada. While a more complete discussion of the pros and cons of the Nevada LLCs series can be analyzed, it is recommended that the previous discussion be presented to a trusted Nevada Attorney business.
The lawyer can quickly identify potential problems in the early stages of organizing an LLC series in Nevada. A well-advised client is much more likely to enjoy the benefits of a properly structured series. In the event that an LLC must have one or more sets and more than one liability shield, the LLC`s statutes must be included: for example, if Master Series LLC is registered in Delaware and the company is active in Illinois, all legal proceedings will most likely be governed by Illinois state law.
