What Kind of Assets Can My Series LLC Hold?

Most investors who use a Series LLC hold multiple assets or pieces of real property, or at the very least aspire to. Naturally, anyone using this structure will want to make the most out of it. Here are some common questions our firm gets about which types of assets should be held in the Series LLC, along with our general recommendations.What types of assets can be held in the same Series LLC?

• The Series LLC has one EIN number and should be treated for tax purposes as if it were one entity (though it has the liability protections as if it were many separate entities). Typically, only one type of income should be held in each Series LLC (e.x. rental income from investment properties should be held in a separate Series LLC than active “fix and flip” income).

Which real property should be held in the Series LLC?

• Any real property that you own should be held in the Series LLC. We recommend that all property be held anonymously through a land trust within an LLC structure – if someone can find it they might sue for it.

Should my homestead property be held in an LLC?

• Homestead property is already protected under statute, but the value of the home may be more than the statutory protection. If the value of the home is less, then leave it alone. If it is more, then you should consider removing the equity in the property that is above the statutorily protected amount.

In short, nearly any type of asset may be held in this versatile type of entity. If you own multiple properties, the Series LLC entity is an excellent choice.