Series LLCs: Are They for Your Business? – Part IV
Read Part I, Part II, and Part III here »
The first three parts of this Article introduced Serial LLCs – a relatively new form of business entity structured to operate multiple businesses in subordinate “protected series” (sometimes “protected series” or “series”) with the ability to partition ownership of assets and exposure to liabilities among the Series LLC and its single or various protected series to achieve the primary purposes of (1) creating separate series as entities between or among which liability shields can exist to protect the parent Series LLC and each protected series and their respective assets, members and managers from exposure to liability from the others, and (2) to minimize legal, accounting, and recording fees that might otherwise accrue when creating separate single or multi-member LLCs underneath a parent LLC. Parts I, II, and III were attempts to briefly describe how Series LLCs work, how they are the same and differ in essential respects from state to state, and to address the challenges still facing Series LLCs before they gain universal utility. This Part IV introduces the new Virginia Uniform Protected Series Act (the “Virginia Act”) which is effective July 1, 2020.