What is a Delaware Series LLC?
The Delaware Series LLC Act provides for the creation of separate “series” within an LLC whose debts and other liabilities are enforceable against that Series alone. The Act also provides that classes or groups of members can be established, having whatever rights the LLC agreement says they have. The combination of the two provisions allows a Series to be treated in many ways as a separate LLC. Thus, the Series provisions of the Delaware LLC Act allow for the creation of separate protected pieces within one limited liability box. Each Series can have its own separate business purposes. A Series can be terminated without affecting the other Series of the LLC and a Series can make distributions to its own member without regard to the financial condition of the other Series. For example, a real estate investor with several properties can separate ownership so that a lawsuit against a single property will not jeopardize the owner’s other investments.
