An LLC is short for Limited Liability Company. It is used in place of C or S Corporation, yet has many protections and advantages of fully incorporated.
Obtaining a business type setup that has a limit on the company liability depends on several qualifying factors, and requires strict adhesion to its identifying factors.
When applied for in a series format, this type of business is similar to a parent company with its subsidiaries.
Several things make it an attractive choice, such as having tax benefits in the form of a lower liability, and offering more protection to the members in regards to protection against claims against company assets arising out of lawsuits.
This particular type of limited liability business format, the series type, is called Delaware Series due to its origination in that State.
Some of the elements that make up a Delaware Series Limited Liability Company are
• Pay only one fee when originating the filing with the tax authorities
• Filing a singular return for any taxes that may be required
Another highly attractive main feature of this business model is that each “cell” or separate company unit that makes up for a series, can be added with relative ease.
The same goes when dissolving a cell, or unit of the main company. The only requirement is that two-thirds of the holding majority needs to be in agreement with the dissolution or expansion, reflected in a board vote, or else a simple majority needs to assent to the changes.
All things considered, this may be a very attractive and suitable format for future businesses.