Whata Up with Series LLCs?

[Randy Forcier]

I’ve been hearing a lot about Series LLCs lately...

Currently I have one LLC with 5 properties and another with 3 properties. Does it make sense to switch to a Series LLC if I plan to keep adding? Seems like a pain in the *** but at the same time a good way to separate each property in a way that's easy to add new properties as needed.

Interested in any thoughts.

Thanks.

[Andrew Gingerich]

Great question. And in short, I'm not an expert on this. However, I recall there being a podcast on this topic. As I understood it then, series LLCs are not legally used in each state but you can incorporate your LLC in a state where series LLCs are permitted... allowing you to use it even if you are not living in said state that permits them. As you already know, it seems, having a series LLC may provide you the added benefit that if you were subject to a judgement the judgement can only go after your one property where the claim was assessed, thus keeping your other investments and personal assets more secure/protected. This is not something I have personally investigated but I am also curious about the approach and use. I live and invest in WA state and I am a bit concerned about starting an LLC in a different state to accommodate the series LLC. Good luck, I'll be interested to follow the thread.