A series LLC in Alabama is a form of LLC that offers its owners and members unique liability and tax advantages. The series LLC is made up of a master LLC and one or more sub-series that branch out of it.
It is not difficult to establish your own Series LLC in Alabama. It’s easy with our step-by-step instructions!
Identify Your Series LLC
Select a Registered Agent and submit the Certificate of Organization.
Make an Operating Agreement for a Series LLC.
Get an EIN.
A series L L C enables its members to split the assets and activities of a “parent” L L C into a set of “child” series.
Step 1: Identify Your Utah Series LLC
You should know the answers to the following questions before naming your series LLC:
What are the rules for naming an LLC series?
What are the standard name guidelines for a series LLC?
Is my company name accessible in Utah?
Is my company name accessible as a URL, and if yes, how can I get it?
1. Series LLC name regulations differ per state. In Utah, each child series’ name must include the name of the parent LLC and be distinct from the names of any other child series. Remember that you must also follow the conventional LLC name regulations.
Follow the Utah LLC Naming Regulations:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organization.
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.
2. Consider the following basic guidelines for making the titles of your series more identifiable, unified, and clear:
Include the phrase “protected series” in the name of each organization.
The parent LLC should be named in a manner that differentiates it from the kid series.
Include the parent LLC’s entire name in the name of each kid series.
The name of the asset should be included in the name of the kid series. This gives the public and creditors a better view of the assets
3. Does your company name exist in Utah? Do a name search on the Utah.gov website to ensure that the name you choose isn’t already used.
Is your company’s name accessible as a URL? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.
Step 2: Select a Registered Agent for Utah Series LLC.
A Registered Agent must be designated for your Utah LLC. The parent LLC’s Registered Agent must be the same for each child series.
What exactly is a Registered Agent? A registered agent is a person or corporation that agrees to deliver and receive legal documents on your LLC’s behalf. Service of process of legal action (if you are sued) and state filings are examples of such paperwork.
Who is eligible to be a Registered Agent? A registered agent must be a Utah person or a company allowed to do business in Utah. You may choose someone from your organization, even yourself.
Step 3: Submit the Organizational Certificate.
You must submit the Certificate of Organization with the State of Utah to register your LLC. This may be accomplished through fax or mail.
Business owners in Utah must fill out an application form to apply for a Certificate of Organization for a series LLC. The state of Utah offers instructions for filling out this form.
Section 8 (objective) of the Utah series LLC form is optional, although many experts recommend including further information about your series in this field (or as an addendum to section 8).
Step 4: Draft an Operating Agreement for a Series LLC.
When founding a series LLC in Utah, an operating agreement is necessary. The operating agreement does not need to be submitted to the state.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? The operating agreement is essential for a Utah series LLC because it establishes a barrier between the child series and the parent LLC. The operating agreement defines the kid series’ responsibility limits (asset protection).
Step 5: Get an EIN
What exactly is an EIN? A corporate entity is identified by its Employer Identification Number (EIN) or Federal Tax Identification Number. Each of your series LLC’s offspring series will need an EIN.
Why do I need an EIN? An EIN is necessary for the following activities:
To establish a commercial bank account for the firm
In terms of federal and state taxation
To recruit workers for the firm
How can I get an EIN for my LLC series? The IRS does not have precise procedures for obtaining an EIN for a series LLC’s child series. For each subsequent EIN, experts recommend utilizing the name of your series LLC coupled with the name of the child series.
