The Nevada Series LLC (Limited Liability Company) is a unique form of business entity that blends the characteristics of a corporation, partnership and sole proprietorship into a simple and flexible business structure that many small business owners prefer”

Benefits-Nevada Series LLC

1. The “Nevada Series LLC” is very well suited for a situation that encompasses multiple income-producing rental real estate properties and business units.


2. The “concept” is based on the model of the Cell Captive Insurance Company used offshore.


3. One “Mother Ship” LLC is formed and each separate cell within it (called a series) can be separately accounted for, and each can own assets and operate as a separate business unit.


4. The idea behind the legislation is that the “liability” of one cell does not infect the others so long as guidelines are followed.


5. So now, instead of using land trusts or multiple traditional LLC’s, you can hold multiple income-producing rentals or fix-and-flip properties in one master Series LLC-but giving each a separate business designation, i.e. “Valley Properties LLC Series I or Series II, or Series III” or “Valley Properties LLC Series A or Series B or Series C” for example. Additionally, you can hold separate business units as well.


6. This approach simplifies formation and reduces legal and tax costs, since only one registration is made with the state and one single consolidated tax return is prepared.


7. To keep the paperwork clean, each series will need to separately identify itself as distinct from the others in all business and tenant transactions-including lease and rental agreements, deposits, bank accounts, etc. in the name of that particular series as opposed to the “mother ship” LLC or any of the other series.


8. The LLC will need to register as a foreign entity in any other state in which it holds properties but ONLY ONCE.


9. Nevada Series LLC’s offer the dual benefit of charging order protection and privacy.