TN is one of the few states that has the series LLC and the series LLC is good to have multiple companies separate under one umbrella company. This is like having a parent company
owning multiple other companies or LLC's. In a series LLC , creditors could enforce liabilities of one series only against the assets of that series or individual LLC. The assets of the master LLC and any other individual LLC under the series would remain outside the reach of creditors. The costs to organize and maintain a series LLC are often less than comparable costs for multiple entities, and a series LLC might require fewer organizational documents than multiple entities.
The cost of a series LLC is cheaper because it is treated as one entity for the franchise
taxes in TN, no matter how many series they have under the one LLC. A Tennessee limited liability company is formed by filing a document called The Articles of Organization with the Tennessee Secretary of State. The fee for filing the Articles of Organization is $50 per member (minimum fee = $300, maximum fee = $3,000). You pay one fee, no matter how many series you register under it. In your LLC operating agreement
you state that one or more series may be established within the LLC. You then open separate accounts and a separate set of books for each series under the LLC and (i) the master LLC must designate the series in its operating agreement, (ii) the master LLC’s operating agreement must provide for such limitation of liability, (iii) the series must maintain separate and distinct records for the series that are separate from the records of the master LLC or another series, (iv) the series must hold its assets separate from the assets of the master LLC or another series, and (v) the master LLC must provide notice of the limitation of liability of the series in its Articles of Organization.
You can get the forms from the TN secretary of state for filing.
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