Delaware Series LLC - FAQ

Frequently Asked Questions (FAQs)

1)         Can I convert an existing conventional LLC into a Series LLC? 

Answer:  Yes.

2)         Do I need a separate Federal Tax ID Number for each series within a Series LLC? 

Answer:  No, rather one Tax ID Number is needed for the Series LLC entity as a whole.

3)         Do I need an Operating Agreement to properly form a Series LLC even if it is a sole member that owns each of the series in the LLC? 

Answer:  Yes.  In order to comply with the statute, it is important to keep the documentation for each series separate and part of that documentation requires a properly prepared Operating Agreement.

4)         Do I need to create a new Series LLC whenever the number of series within the LLC is increased or decreased. 

Answer:  No.

5)         Is there any case law or court decisions interpreting the Series LLC?

            Answer:  Not as of this writing, but that may change soon after the date of the preparation of these FAQs.

6)         Do all states recognize the Series LLC form?

            Answer:  At this time Delaware is the only state that recognizes this form of entity, but traditionally other states recognize an entity that is properly formed in its original state of formation.  Also, this situation may change after the date this statement was written.