Multiple formations under LLC

Asked by: Kenneth  — 12 December, 2011

Am I allowed to have multiple formations (unlimited formations) under a parent LLC?

Answered by: admin  — 12 December, 2011


I can interpret your question in one of two ways:

1. Some states allow you to form a Series LLC, allowing the ability to divide the company’s assets and liabilities into various sub-LLCs or cells (called “series”) while controlling them from one umbrella company, commonly referred to as a Parent LLC. Forming a Series LLC can be advantageous, however is only available in 7 of the 50 states.

2. If the Series LLC is not available in your state, you can form an LLC, and use this entity to be a member or partial-owner of other LLC’s or register DBAs for this LLC. There would really be no limit to how many registered entities you could have registered by your original LLC, or how many DBA the LLC has.

Each of these options would have their advantages/disadvantages. It’s always recommended you consult with a professional attorney or an accountant to help figure out the best strategy based upon your business endeavors.

I hope you were able to find this answer helpful.

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