Series LLC Operating Agreement Guide

Create a comprehensive Operating Agreement for Wyoming Series LLCs with proper series segregation provisions.

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How This Operating Agreement Works

Wyoming Series LLCs allow you to create separate "series" or "cells" within one LLC, each with its own assets, liabilities, and operations. This structure requires specialized Operating Agreement provisions.

The Operating Agreement must establish: series creation procedures, separate record-keeping requirements, liability segregation between series, allocation of expenses and income, and winding up of individual series.

Wyoming law provides strong liability segregation for Series LLCs when properly maintained, but the Operating Agreement must clearly establish the separation requirements.

Understanding Your Results

Series Creation

Procedures for establishing new series including naming conventions, asset transfers, and record establishment.

Liability Segregation

Provisions establishing that debts and obligations of one series do not affect other series or the master LLC when properly maintained.

Separate Records

Requirements for maintaining separate books, bank accounts, and records for each series to preserve liability protection.

Expense Allocation

Methods for allocating shared expenses (legal, accounting, management) across multiple series fairly.

Series Dissolution

Procedures for winding up individual series without affecting the master LLC or other series.

Important Considerations

  • Series LLCs require sophisticated Operating Agreements - consider attorney assistance
  • Maintain complete separation between series including separate bank accounts
  • Banking for series LLCs can be challenging - some banks do not understand the structure
  • Not all states recognize Series LLC liability segregation - consider where you operate
  • Wyoming offers strong statutory protection for properly maintained series LLCs

Frequently Asked Questions

Q: What is a Series LLC?

A: A special LLC structure allowing creation of separate series with segregated assets and liabilities within one master LLC.

Q: Does each series need its own Operating Agreement?

A: Typically one master Operating Agreement governs all series, with specific provisions for each series documented separately.

Q: Are Series LLCs recognized in all states?

A: No, only some states have Series LLC statutes. However, even non-Series states may respect the liability segregation under full faith and credit principles.

Q: How much does a Series LLC cost?

A: Wyoming formation costs the same as regular LLCs ($100-102), plus ongoing maintenance costs for each series.

Q: Can I move assets between series?

A: Yes, but proper documentation is essential to maintain liability segregation. Consult an attorney for significant transfers.

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