Regular readers know our firm absolutely loves the Series LLC. It’s among the most versatile and powerful entities for real estate investors, or anyone with a growing business in need of asset protection. Today, we’re addressing how the Series LLC holds up over time. So, can your Series LLC live on forever? Why would you want a company that could achieve such longevity? We’ll answer these questions and more below.
Can The Series LLC Have an Unlimited Lifespan?
The short answer is yes, it absolutely can. Traditional LLCs can also have unlimited lifespans under some circumstances. What does this mean in practice?
Some types of companies have laws that require them to re-file with the state to continue existing beyond a certain point. Otherwise, these companies will be required to dissolve within a specified timeframe. By contrast, the Series LLC has an unlimited lifespan, also referred to as a perpetual lifespan, automatically. When you use this structure, you won’t have to worry about re-filing, or other paperwork hassles. Read on to learn more about the specific benefits of this feature.
Why Should I Care About My Company’s Lifespan?
There are several advantages to having a company with an unlimited lifespan. The most obvious of these is that you’ll save money. Re-filing with the state isn’t free. You have to pay fees when you re-file to prevent the dissolution of a company with a concrete lifespan. The Series LLC, however, is immortal. You pay once, when you establish it, and you’re done. Some other perks of perpetual lifespans include the following:
- Freedom to run your company and assemble your board/members as you see fit. Other types of companies will require annual board meetings or specify different aspects of management. You’re free of these obligations when you use a Series LLC.
- Ability to add members without interference from the state. Since company’s with a measurable lifespan have board requirements, they don’t enjoy this luxury.
- Separation between you as an individual and the assets within your Series LLC. In theory, the company could outlive you. That said, if it does, you’ll have to anticipate changing membership.
- Tax savings, both because you’re only filing with the state once, and also because the Series LLC receives pass-through tax treatment.
Of course, there are many more benefits to the Series LLC as a whole. You can read much, much more in our previous posts about advantages of using a Series LLC.
How Do I Form My Series LLC?
Forming a Series LLC still requires filing paperwork with the state. You’ll also need an Operating Agreement for the parent company, banking and bookkeeping preparation, and enough Series for each of the assets you intend to protect. Getting this done correctly is important to make the most of your new entity.
That’s why it’s important to get help from a qualified attorney with specific experience in Series LLCs and their management. At Royal Legal Solutions, we offer a full-service Series LLC package that gets you in business as soon as possible. If you’re ready to get started, schedule your Series LLC consultation today.