Series LLC - Process

[Eric Barnett]

I've read thru several posts but wanted to get a clear process or steps for creating a Series LLC and then how to move forward with each new acquisition. My understanding is as follows:

Parent LLC - owns all cells and is the master LLC with managing rights etc.

Individual or Series LLC(s) - created with simple documentation referencing the operating/company agreement, internal document and not recorded. Following closing on the property you would drat this document with the new series llc name then record a deed transferring the property from personal name to series llc name. Another route, and possibly better, would be to create a trust for each series (title same as series llc but replace llc with trust) then record a deed conveying the property from personal name to trust with prior documentation showing trust conveying to series llc. This would provide the anonymity aspect desired but with property that retains high leverage and adequate insurance is this necessary? I know if an attorney really wants to locate a private owner they can get around this.

All accounting must be done separately (schedule E) but rental income can be paid into single business account (parent LLC name) then taken out as an owner draw into the individual's name/account.

Thanks for any help, working thru some things setting up now and wanted to be sure it is done correctly before forming parent LLC or recording any deeds that would create a bigger mess to clean up.