What Is A Series Llc In Illinois?

  1. Illinois Series LLC. A Series LLC Since 2005, new business organizations in the state of Illinois have the option of forming a limited liability corporation within the state, which may then function as an umbrella
  2. Series LLC Requirements. Establish one or more series in the agreement governing its operations
  3. The Numerous Advantages of Series LLC
  4. Negative aspects of the Series LLC

In Illinois, a series limited liability company (LLC) is a specialized kind of LLC that confers certain liability and tax benefits on the LLC’s owners and members. A master limited liability company (LLC) serves as the foundation for a series of individual limited liability companies (LLCs) that branch off from it.

– A copy of the Articles of Organization for your Illinois Series LLC – The Operating Agreement for your Series LLC – The Employer Identification Number for your Illinois Series LLC

What is a a series LLC?

A limited liability company known as a series LLC is one in which each series functions independently as a distinct limited liability company for the purposes of liability protection. It is comparable to a single cabinet that has several different cubby holes. A legal action brought against one installment does not have an effect on the others.

What is the Illinois series LLC statute?

Illinois Series LLC Statute.Illinois became the sixth state in the nation to authorize the creation of series limited liability companies on August 16, 2005, when the Series LLC Statute (805 ILCS 180/37-40) was introduced to the Limited Liability Company Act of Illinois.The majority of the provisions that may also be found in Delaware’s laws, which was adopted in 1996, can be found in Illinois’ statute as well.

How do I form an Illinois series LLC?

Form LLC.5.5 (S), also known as the Series LLC Articles of Organization, is the document that has to be submitted to the Illinois Secretary of State in order to establish an Illinois Series LLC. Look at the paper that’s been provided below, and then click on any number to find out what kind of information is needed in each part.

Does your series need a registered agent in Illinois?

Your Series LLC is needed to appoint and keep a registered agent in Illinois who may accept legal notices on the company’s behalf and receive service of process on its behalf.Your company’s Articles of Organization must include an Illinois street location where a registered agent may be reached during standard business hours.This agent must be located in Illinois.Does Each Series Need a Different Registered Agent?

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What is the difference between a standard LLC and Series LLC in Illinois?

In the same manner as a regular limited liability company would, a Series LLC is required to submit its Articles of Organization to the Illinois Secretary of State using Form LLC-5.5(S). The only differences are the filing cost, which increases to $400 from $150, and the need that an extra clause be added to the Series Articles of Organization.

What is the purpose of a Series LLC?

With the use of a Series LLC, a holding company is able to consolidate all of its separate businesses under a single roof, therefore reducing the likelihood that the assets of one company may be liquidated in order to pay off the debts or obligations of another of the holding company’s companies.

What is the difference between a series LLC and a restricted LLC?

Structure: A series LLC is a sort of master LLC that constitutes numerous sub LLC’s or a series of corporate divisions with independent members or managers and assets.This structure can also be referred to as a multi-level limited liability company (MLC).A Nevada restricted limited liability company (LLC) is analogous to a conventional LLC in that it does not have distinct members or assets organized in divisions or series.

Does each Series LLC need its own EIN in Illinois?

In most cases, a single tax return is submitted for the limited liability company (LLC), which includes the net income or loss from each series. Nevertheless, each series has to have its own EIN number and store its books and records in a separate location.

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

In order to create a series in Illinois, a Limited Liability Company (LLC) must first get authorization.This is accomplished by submitting the necessary documentation to the state regarding the formation of a Series LLC.Following the conclusion of that step, the Master LLC will be able to submit a Certificate of Designation.Using this document, you will be able to establish individual Series LLCs that are subordinate to the Master LLC.

How is a Series LLC taxed in Illinois?

Depending on the number of people that are part of the series, the Series may or may not be taxed like a partnership in the state of Illinois.The ″passing through″ of profits or losses from the limited liability company (LLC) to the members of the LLC prevents the ″double taxation″ that is typical of systems using C corporations.The required tax forms could be different from one state to the next.

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Is a series LLC better than an LLC?

A Series Limited Liability Company provides you with all of the same benefits that a regular Limited Liability Company does; however, it also acts as a kind of ″umbrella company,″ providing additional flexibility and protections for multiple companies or lines of business that are included in your overall operation.

Is a series LLC a holding company?

Holding companies do not participate in the day-to-day operations of the businesses they own; rather, their sole purpose is to simply exist. The holding company would own all of the individual series that fall under its umbrella if it were structured as a series LLC. When it comes to liability management, real estate owners that own many properties may choose to construct series LLCs.

Who uses series LLC?

The state was the one that came up with the idea of an LLC series.Formation of series limited liability companies is restricted to a select number of states.Delaware was the first state in the US to pass laws that made it possible to form series limited liability companies (LLCs).There have been a number of states including Puerto Rico that have followed suit, including Illinois, Iowa, Nevada, Oklahoma, Tennessee, Texas, and Utah.

Do Series LLC file separate tax returns?

At this time, the Internal Revenue Service views the Series LLC as a single large business.Because of this, each series contained inside the structure will not be regarded as a distinct business and will not be required to file separate tax returns as a result.Naturally, you will be required to report any income that you have earned through your Series LLC, and we will provide further explanation of this need in the next section.

What are some benefits of a series Operating Agreement?

Advantages of Using an Operating Agreement for a Series LLC retaining some of its own property and resources. Carry out its own internal processes. own its own individuals. Pursuit of distinct business goals that are distinct from those of the other ″cells″

What is an example of a Series LLC?

As a result of this uniformity of ownership among the protected series, the earnings and losses of each protected series pass directly to the members of the mothership LLC rather than going via the mothership LLC. To illustrate this point with a straightforward illustration, let’s say that ABC Capital LLC is a single-member Delaware Series LLC and that Abel Adams is the member.

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How do I file a Series LLC in Illinois?

In order to establish a Series LLC in the state of Illinois, you will need to provide the Illinois Secretary of State with Articles of Organization using Form LLC-5.5(S). This document can either be sent in or uploaded via the website. The filing fee for the Articles of Organization of an Illinois Series Limited Liability Company is $400.

How do you write a Series LLC?

Rules regarding the name of series LLCs might differ from state to state. General series LLC naming guidelines:

  1. In the name of each organization, you should include the phrase ″protected series″
  2. Choose a name for the parent LLC that is easily distinguishable from that of the kid series
  3. In the name of each kid series, you should include the complete name of the LLC that is the parent

How do you name a Series LLC?

Helpful Advice Regarding the Naming of Series

  1. The name of the series must start with or conclude with the name of the parent limited liability company (LLC), including any term or abbreviation that is required by the legislation that governs the naming of LLCs
  2. And
  3. The word ″Protected Series″ or ″protected series″ or the abbreviation ″P.S.″ or ″PS.″ must be included in the name of the series

What states have series LLC?

  1. Alabama
  2. Arkansas
  3. Delaware
  4. United States: District of Columbia
  5. Illinois
  6. Indiana
  7. Iowa
  8. Kansas
  9. Missouri
  10. Montana

How do you create a LLC in Illinois?

  1. Pick a name for your limited liability company. In order to comply with Illinois law, the phrase ″limited liability company,″ ″L.L.C.,″ or ″LLC″ must appear at the end of a name for a limited liability company (LLC)
  2. Choose someone to act as your Registered Agent. Every limited liability company in the state of Illinois is required to establish a local agent where legal documents can be served.
  3. Put in an application for a business license.
  4. Make sure you have an Operating Agreement ready.
  5. Obtain an EIN.
  6. Put in your Annual Reports

What are states permitting series LLCs?

Those states that do allow Series LLCs have a variety of statutes that considerably differ from one another. The only states that accept Series LLCs as legitimate commercial organizations are Delaware, Alabama, Oklahoma, Illinois, the District of Columbia, Iowa, Indiana, Montana, Missouri, Kansas, Tennessee, Nevada, and Utah. Texas is also one of the states that recognizes Series LLCs.

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