Entities form the basis of asset protection plans. With all of the advantages a Series LLC offers real estate investors, it is only natural to wonder if your state offers this option. But that isn’t the only factor to consider. Read on to learn more about taking advantage of the Series LLC as an Alabama investor.
Does Alabama Offer a Series LLC?
Not every state offers its own Series LLC, nor are all Series LLCs created equally. Alabama began offering its Series LLC in 2017 with the passage of updated LLC legislation.
That said, Alabama’s Series LLC is a newer entity that is less established, which may give some investors pause. Further, Alabama investors are not confined to using the Alabama Series LLC. In fact, there is no particular advantage to doing so. Other jurisdictions, however provide Series LLC options with known benefits.
The Texas Series LLC has existed since 2009 and has proven to be a useful tool for investors across the country. Some advantages of the Texas Series LLC include a low, one-time filing fee, the lack of a state income tax affecting the LLC structure, charging order protection, and more. The Delaware Series LLC is another excellent option. Some investors opt for the Delaware Series LLC for the tendency of the state’s court systems to treat these entities favorably. Fortunately, both of these options are available to Alabama investors.
What Can The Series LLC Do For Me?
Regardless of where it is formed, the Series LLC offers some clear benefits for the real estate investor.
- Streamline business. A Series LLC can allow you to control multiple properties from a single account.
- Scale up indefinitely. Creating a new child series is as simple as creating a Series Document on your personal computer, signing it, and making copies for yourself, any business partners, and your attorney.
- Pass through taxes for simple filing. Profits and losses are reported on Schedule E of your personal tax return.
- Allow for taxation flexibility between child series. Since you do not have to tax all Series entities the same way, you can elect for S-Corporation taxation Status, Limited Partnership, or disregarded entity status according to what makes the most sense for your business.
- Separate assets to limit liability and exposure to lawsuits. Stop lawsuits before they start by compartmentalizing your assets.
How Royal Legal Solutions Can Help Alabama Investors
Royal Legal Solutions offers the Alabama investor the opportunity to take advantage of the Texas Series LLC or Delaware Series LLC for an ideal asset protection strategy. Work with the experts at Royal Legal Solutions, you get the best asset protection plan for you. Contact us to schedule your personalized consultation today.