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Return To Corporate Direct Homepage > Message Board > How do you separate liabilities in a single LLC through a series of LLC's?
 

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Moderator
    02/14/08 at 11:50 PM
Reply with quote#1

We have an LLC which is an IP company owning multiple websites, domains, and copyrighted material. Is there an easy way to separate each website under the LLC so one is not liable for any of the others? Kind of like offline real estate properties.

And does Corporate Direct have "Serial LLC" services in addition to your LLCs mentioned on your site? I've never heard of these before so thought I'd ask

Example, this is from a registered agent site in Delaware:

Delaware Law allows for a version of the Limited Liability Company often called a Serial LLC. An LLC is normally very simple to create. The major difference between an LLC and a sole proprietorship or a partnership is the limitation of liability an LLC brings to you. But say that you wanted to conduct more than one type of business, and you didn't want to create a separate corporation or limited liability company for each. The "Serial" LLC allows different lines of business to be treated separately from each other from a liability standpoint. So, for example, an LLC that owns several apartment buildings may insulate the LLC from liability for each individual building, if the operating agreement allows for it, and the operating agreement is followed. For more information take a look at the Limited Liability Company Act of the Delaware Code (especially, Title 6, Section 18-215; Series of members, managers or limited liability company interests). The Series LLC law was originally designed to allow money management funds to operate effectively as limited liability companies. It is now being adapted to real estate and estate planning purposes.

attorney
    02/15/08 at 12:04 AM
Reply with quote#2

The only way to [potentially] separate liabilities in a single LLC is through a Series LLC. A handful of states offer these but they have never been tested in court to prove that they will indeed separate liability. The best way to separate liabilities is to house the liabilities in separate LLCs.

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