Nevada, Delaware, Oklahoma and Iowa have little known statutes recently enacted that provide for the creation of cells within an umbrella LLC establishing separate liabilities, managers, profits, etc. These statutes allow an organization that desires, for example, to hold a number of rental properties, or other businesses, to set up just one company. In the past, placing a number of businesses or properties in one organization did not allow for separate liabilities for each, and was an unsatisfactory means for holding businesses or property if one was seeking asset zation would be vulnerable to an adverse judgment. The
only way to get around this issue was to form multiple LLCs. (One for each property or business) with the attendant multiple and repetitive expenses.
Now, with the use of a Nevada Series LLC, one may form a single LLC with separate cells for each entity or property. This will then result in substantial savings in the form of :
- One filing and formation fee
- One annual resident agent fee
- One tax return.
Each series or cell would have its own liabilities and expenses and neither the umbrella LLC nor the other cells in the series would be liable for the debts and expenses of the others. Thus, you will receive asset protection for each separate property or business without multiple formation expense. This is certainly a cutting edge piece of legislation and will eventually be enacted in many more states. Nevada does require that the books and records for each series be kept separately.
This is the ideal solution for Owners of multiple properties or businesses. We are one of the few services that have the ability to create this entity and its corresponding unique operating agreement. Call us today for more information.