Attorney told me that series LLC's arent legal

[Jessie Randolph]

So I met with an attorney so I could set up my llc right. I told him I wanted a series llc and he said it wasnt legal in ohio yet but was in the works. Wondering how others here in ohio have structure their LLC's in ohio to protect there assets independently for buy and hold?

[Bob Floss II]

The number of states that are allowing series LLC's is growing each year, but it's still not many. In states that don't allow it yet, we do it the old way. Essentially a parent LLC that holds assets with no liabilities. The parent LLC is 100% member in the other LLC's you set up. Those LLC's own the properties, pay the bills, etc. The profits from the LLC's flow up to your parent LLC. Use the cash flow in the parent LLC to get access to LOC's and keep adding new LLC's to shield the parent. The series LLC format essentially mimics the plan. The only difference is the old method does tend to allow more flexibility to enter into new partnerships and profits splits when you set them up and purchase properties (if you decide to bring in partners).