|
Delaware has created an innovative solution to
those with many assets and those who seek to keep it under one umbrella:
The Delaware Series LLC.
On the surface, it makes to use a Delaware Series
LLC for the following reasons:
Delaware Series LLC Advantage #1. Multiple partners have an interest in
many different types and parcels of property.
Delaware Series LLC Advantage #2. There appears to be a multiple layer
effect using the series LLC.
Delaware Series LLC Advantage #3. Those who promote the Delaware Series LLC
mention that it costs less to form one entity than to form multiple LLC's.
HOWEVER, the following challenges are
important:
Delaware Series LLC Problem #1. Many attorneys are NOT familiar with the
Delaware Series LLC and those who are knowledgeable--charge an arm and a
leg. This leaves you more "in the hole" on the legal fees although
you saved a few hundred dollars in incorporation expenses.
Delaware Series LLC Problem #2. The Delaware Series LLC is unproven
in its capacity to protect using a multi-layer approach. Many
attorneys simply don't like the Delaware Series LLC because they are
uncertain of the advantages, the potential problems and the
protection is unproven.
Delaware Series LLC Problem #3. Considering the cost of the Wyoming LLC,
you're better off with several Wyoming LLC's rather than risk using
one Delaware Series LLC.
|
