Updated October 14, 2026. Written for first-time owners.
A series LLC is one LLC divided into separate “series,” or cells. Each series can have its own assets, owners and business purpose. When the rules are followed, one series’ debts can’t reach another series’ assets. Only some states allow series LLCs, and they are more complicated than regular LLCs.
How it works
Delaware’s LLC Act, section 18-215 lets an LLC set up one or more series. Each series has its own members, property or business purpose. For the liability walls between series to hold, the law requires separate records and keeping each series’ assets apart, among other conditions.
A common example is a landlord with three rental houses. Each house goes in its own series, so a lawsuit over one house doesn’t put the other two at risk.
Series LLC vs. separate LLCs
| Series LLC | Separate LLCs | |
|---|---|---|
| Where it is allowed | Only in states with a series law, such as Delaware | Every state |
| Filings | One formation, sometimes with extra series filings | One formation and yearly fee for each LLC |
| Liability walls | Depend on following the series rules, and less tested in court | Well established |
| Banks and lenders | Some are unfamiliar with series | Standard |
| Taxes | More complex; get a tax pro | Each LLC taxed on its own |
Who it fits
Series LLCs mostly suit people who hold several similar assets, like rental properties or vehicles, in a state that allows them. For a single small service business, a regular LLC is simpler. If you work in a state with no series law, it is unclear whether that state will respect the walls between series.
Comparing costs? See what a Delaware LLC really costs.
Keeping it simple?
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FAQ
Can I run multiple businesses under one LLC?
Yes. A regular LLC can run several lines of business, but they all share the same liability. A series LLC, or separate LLCs, keep them apart.
Which states allow series LLCs?
Delaware and a number of other states have series laws. Check your state’s LLC law or secretary of state before you plan on one.
Is a series LLC cheaper than several LLCs?
Sometimes it costs less in state fees, but extra filings, bookkeeping and legal help can cancel out the savings.
How is a series LLC taxed?
It is more complicated than a regular LLC. Ask a tax professional how each series should file.
Related LLC questions
This page is general information, not legal or tax advice. Rules change and every business is different, so check with your state or a tax professional before you decide.
Last updated October 14, 2026 by StartBusinessByState.