Series vs. Traditional LLC

[Sophia Griffies]

There was a recent Bigger Pockets blog post about Series LLCs vs traditional LLCs. It sounds like some states don't allow them, but you can get one that is registered in another state. Texas, Delaware or Nevada appear to be the best options. I'd love to hear from anyone who has a Series LLC and can share pros and cons. Thanks!

[Chris Martin]

@Jiri B. has it.... 

In addition, of course, you may have different partner makeups per LLC and need an LLC for handling your membership requirements for profit/loss/capital (P/L/C) and divvy up percentages (same logic also applies for Investment Tax Credits for people who like to pay no current or future taxes... like the 'bigly' man for the past 20+ years).

Let's pretend you are the biggest landlord in Raleigh. Would you use a series LLC from another state? Or a 'domestic' series LLC in NC? Maybe if an NC series LLC existed... but it doesn't, so the answer is relatively easy.

So how does the largest landlord in Raleigh do it? How do they hold their roughly (note 1) in NC? The answer is in multiple NC LLCs... like about 5 or so now, each containing (owning) several hundred houses. And for a historical perspective, from people (and me) who saw it happen in real time, you can search through BP for . 

So for $202 a year ($2 for paying electronically) per LLC, they (AH4R) are getting a deal from NC. 2,040 properties and only 5 tax returns to file... $0.10 a property/year LLC government overhead. Isn't that the way it is supposed to be?

In business, unlike first grade, you can count any way you like: AH4RP One, LLC; AH4RP Three, LLC; AH4RP Four, LLC; AH4RP Five, LLC; AH4RP Nine, LLC (see image below of results starting with 'american homes'... LOL!) 

(And, yes, I am aware some similarly named LLCs (all with same Agoura Hills CA address) were consolidated through financing and/or mergers... so don't flame me for taking some liberties... I think my point is clear - put a few hundred houses in an LLC then move on... LOL!)

Notes: 1.) From