Series LLCs do they really offer as much protection as multiple LLCs (hub and spoke)

[Corey Duran]

(Posted in wrong category please delete)

I have been doing a lot of research online while trying to figure out how I am going to restructure my rental business and one thing that has recently been introduced to me is the series LLC. I was going down the path of the hub and spoke model when I found a solution that would essentially solve the biggest issue I was facing. Having so many bank accounts and other administrative extra work.

I am in Ohio where Series LLCs are allowed and this sounds like a really good solution for me. However, the one bank account thing was what many have warned me about. I have read that this is a big no-no in trying to get asset protection. They basically have said this equals an easy piercing of the veil.  I am just curious if someone could give a little insight on the series LLCs.

Do you use one?

Are there any major drawbacks compared to setting up multiple individual LLCs?

Do you know of any attorneys who could help me set one up properly?

[Jason Marino]

Hi Corey,

I want to expand on something noted in a post above. Series LLCs are not really new in the United States when you look at them in comparison with traditional LLCs. Traditional LLCs in the United States were first established in 1977. In comparison, Series LLCs were first established in Delaware in 1996. Since the entity was created, it has been adopted by numerous States. Based on this, there has been a good amount of time to establish precedent on Series LLCs. Series LLCs are not an untested entities.