If you’re running a business with multiple ventures, real estate properties, or revenue streams, you’ve probably wondered how to protect each part without forming a dozen separate LLCs. That’s where the Delaware Series LLC comes in—a flexible, cost-effective structure that’s gaining traction across the country, including in Washington.
A Quick Overview: What Is a Delaware Series LLC?
A Series LLC is a unique legal structure created under Delaware law. It allows a single LLC (the parent) to form multiple independent cells within it. Each cell can have its own assets, liabilities, members, and operations—almost like having several LLCs under one legal roof.
Imagine your business is a filing cabinet.
- A traditional LLC is like one big drawer. All your important papers—like operations and assets—are stored together. If something goes wrong in that drawer (like a lawsuit), everything inside could be affected.
- If you set up multiple separate LLCs, it’s like having several filing cabinets, each with its own drawer. This keeps things separate, but it can also mean more work, fees, and paperwork.
- A Delaware Series LLC is like one filing cabinet with different folders inside. The cabinet is the parent, and each folder is a cell. Each cell holds its own papers, and if one folder gets messy, the others stay clean and safe.
Why Business Owners Love Them
Here’s how a Delaware Series LLC can help you run your business smarter:
- Liability Protection: If one cell is sued, the others are generally shielded—so a problem in one part of your business doesn’t threaten the rest.
- Cost Savings: You only form and register the parent LLC. No need to pay separate filing fees for each cell.
- Operational Efficiency: You can manage multiple ventures—like rental properties, product lines, or franchises—under one legal entity.
- Custom Governance: Delaware law lets you tailor the LLC agreement for each cell, including defining or limiting fiduciary duties (except for the implied covenant of good faith and fair dealing).
Do Series LLCs Work in Washington? Yes—With a Twist
Washington doesn’t have its own Series LLC statute, but it recognizes Delaware Series LLCs that are properly formed and registered as foreign entities. That means you can form your Series LLC in Delaware, then register it to do business in Washington.
This is especially useful for:
- Real estate investors with multiple properties
- Entrepreneurs running several brands or product lines
- Business owners who want to isolate risk without creating multiple LLCs
Is a Delaware Series LLC Right for Your Business?
A Delaware Series LLC offers a powerful blend of flexibility, protection, and efficiency. Whether you’re managing real estate, launching new ventures, or just want to keep your business assets neatly separated, this structure can help you grow while minimizing risk.
If you’re based in Washington and looking for a smarter way to organize your business, a Delaware Series LLC—with its parent structure and individual cells—might be the tool you didn’t know you needed.
To learn more about Delaware Series LLCs, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.