World Class Mergers & Acquisitions  |  For Companies $5 Million to $250 Million in Revenue

Mergers & Acquisition FAQ – November 2011

Q: What is a Series Limited Liability Company (Series LLC)?

A: A Series LLC is a company created and formed under state statute that is similar to a regular LLC.  The difference is that assets are placed into series for the purpose of gaining additional liability protection.  They are only available in a limited number of states, but are gaining momentum in their popularity.

Q: Can I convert my regular LLC into a Series LLC?

A: Yes and no.  From a legal standpoint, you cannot change the form of your company from an LLC to a Series LLC directly.  If you want to make such a transformation, a Series LLC must be formed separately and independently.  From that point, the assets can be transferred from the old LLC to the new Series LLC.

Q: What is the IRS’s position on the Series LLC?

A: Generally, the Series LLC is recognized by the IRS as a legitimate entity.  Tax returns will be filed according to the appropriate elections made by management and their counsel.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors