Have you heard about how to form an LLC in Wisconsin and are you thinking about opening a Series LLC in Wisconsin? You need to understand that you have to learn the ins and outs of the process, as well as follow the laws of the state. If you don’t feel intimidated by these requirements and want to open a Series LLC, then we’re ready to help you.
The first limited liability company was founded in the late 1970s in Wyoming. This business structure, known as an LLC, is a very popular business entity in all states of America, unlike the Series LLC, which is only available in some states.
The LLC Series was first offered in Delaware, and from there, it has spread to other parts of the U.S. It is already clear from the name, that a Series LLC includes more than one division or, as the name implies, more than one series. But, at the same time, each division has its own specific goal, and it may not coincide with the purpose of its parent company. It follows that every unit is legally independent, as long as the series is set up in the proper way.
There are some key issues affecting the Series LLC establishment process, and if you’re interested in taking your business venture a step further, we recommend you find out about all the legal technicalities of this procedure.
REMEMBER: In the murky waters of business law, it’s essential to know that even with the best resources about the creation of this type of entity, it can not guarantee you a smooth process, when you are not someone overly familiar with this aspect of the state legislation. It’s recommended you seek legal advice to assist you in setting up a Series LLC in Wisconsin.
If you are one of those who intend to grow your business steadily, as well as want to protect your assets, then a Series LLC is exactly what you need. What’s more, you can hire an LLC service and it will do everything for you, including all the paperwork. However, when you want to take control of the process yourself, then you can handle the Series LLC creation on your own.
What Does Series LLC Stand For?
As previously established, a Series LLC is a group of divisions opened by a single parent company. Despite each division operating under the same parent LLC, the nature of this model is to provide each division owner with more independence, financial autonomy, and, at the same time, legal security. First of all, it ensures the parent company and other LLC divisions are less likely to face a lawsuit specifically targeted at a single division in the series.
If you are well-versed in the regular LLC business structure, then it won’t be a surprise to you that Series LLC Wisconsin comes with the same limited liability insurances intended to shield a regular company’s assets when a lawsuit arises. It means that an owner’s individual assets, as well as interests of other sub-divisions, will not come under fire when a lawsuit is brought against one an unconnected LLC division from the Series.
Because a Series LLC eliminates the legal dependency between all LLCs operating under one parent company, this is a very important point for many entrepreneurs.
How To Open a Series LLC in Wisconsin?
Frankly speaking, this state is not exactly welcoming of a Series LLC Wisconsin and it is unlikely to be beneficial in terms of legal independence. The state’s business corporation law goes against the principles of this type of entity in a sense of undercutting the limited liability protections that make this business model attractive in the first place.
This means that all LLC divisions are likely to share liability, making the parent LLC and other divisions vulnerable to lawsuits even in the event of only one division being under fire.
Seeing that the very nature of this model becomes rather pointless, starting an LLC in Wisconsin instead would make just as much sense. And if you do need your business entities to be insulated from one another legally, the only way to do that would be creating several independent LLCs instead of Wisconsin Series LLC.
In the event of the business corporate laws of Wisconsin undergoing certain changes that would allow for isolated limited liability within a Series, the article will be edited accordingly and updated with relevant information. As of this moment, forming a Series LLC in Wisconsin would not make much sense for you from a legal standpoint.