By Michael Salad, Esq. and Sean Dougherty
Effective July 1, 2026, Florida will permit the use of Protected Series Limited Liability Companies (“Series LLCs”), creating a new asset protection and business planning tool for investors, entrepreneurs, and families who own multiple assets or operate multiple lines of business. Florida adopted the Uniform Protected Series Provisions and incorporated them into Chapter 605 of the Florida Revised Limited Liability Company Act.
Florida will join a small group of states, including Delaware and Nevada, that have enacted comprehensive Series LLC legislation. Much of the early discussion surrounding Florida’s new law has focused on how a Series LLC works. An equally important question for many existing business owners, however, is whether they should consolidate their existing LLCs into a new Series LLC structure.
The answer is not always straightforward.
What is a Florida Series LLC?
A Series LLC is a single “parent” LLC that may establish multiple “protected series” beneath it. Each protected series may separately own assets, incur liabilities, enter into contracts, and conduct business activities, while remaining under the umbrella of a parent LLC.
Key Characteristics
- A Florida Series LLC cannot create a protected series informally. Florida law requires filings with the Florida Department of State before a protected series may be established.
- Although a protected series may operate independently, it cannot exist separately from the parent Series LLC. Therefore, if the parent Series LLC is dissolved, its protected series will also be dissolved.
Example: Real Estate Investors
For real estate investors, a Florida Series LLC can provide a more streamlined alternative to forming multiple standalone LLCs.
Consider an investor who owns five rental properties. Traditionally, the investor might establish five LLCs, one for each property, to help isolate liability. Under Florida’s new law, the investor may instead form one Series LLC and create five protected series, with each property owned by a separate series.
If a lawsuit arises from Property A, the assets associated with Properties B, C, D, and E may remain protected, provided the statutory requirements for maintaining separate records and assets are followed.
What Are the Potential Benefits of a Florida Series LLC?
Florida’s framework is intended to create “horizontal” and “vertical” liability shields.
- Horizontal liability protection is intended to isolate liabilities among individual protected series.
- Vertical liability protection is intended to separate liabilities between the parent Series LLC and each protected series.
Rather than creating numerous standalone LLCs, business owners may be able to operate multiple protected series within a single entity.
Potential Advantages
- Liability segregation among protected series
- Reduced administrative burdens
- Potential cost savings
- Greater organizational efficiency
- Flexibility in ownership and management structures
- An ability for each protected series to sue or be sued in its own name
Considerations Before Choosing a Series LLC
However, any anticipated cost savings should be evaluated carefully, as separate accounting, insurance policies, banking relationships, and compliance obligations may still be advisable for each protected series.
For investors actively growing a portfolio of rental homes, commercial properties, or short-term rentals, a Florida Series LLC structure may offer a practical balance between liability protection and operational convenience.
Coming Next
In our next article, we’ll examine whether consolidating existing LLCs into a Florida Series LLC makes sense and the factors every business owner should evaluate before making that decision.
Michael Salad is an attorney in Cooper Levenson’s Business & Tax practice group. He concentrates his practice on estate and asset protection planning, probate and trust administration, special needs planning, business transactions, mergers and acquisitions and tax matters. Michael holds an LL.M. in Estate Planning and Elder Law. Michael is licensed to practice law in Florida, New Jersey, New York, Pennsylvania, Maryland, Connecticut, Georgia, Massachusetts, Alabama, Arizona, Virginia, Michigan, North Carolina, and the District of Columbia. Michael may be reached at (954) 889-1850 or via e-mail at msalad@cooperlevenson.com.
Sean Dougherty is a Summer Associate at Cooper Levenson. He is a J.D. Candidate at NSU Shepard Broad College of Law. Sean may be reached at sdougherty@cooperlevenson.com
The content of this post should not be construed as legal advice. You should consult a lawyer concerning your particular situation and any specific legal question you may have.