Does a Series LLC protect your assets?

Question

I went ahead and created multiple LLC's for a couple properties I'm buying. My Lawyer said it was wise to have each property in separate LLC's in case of lawsuit or something. My Accountant recommended I look into a Series LLC that would help cut down on paperwork, clutter, and fees, but after reading Biggerpockets it seems rather divided on the topic.

My main concern is whether I'd be protected in the same way with a Series LLC that I would be if I placed each property into separate LLC's?

Edward B. · Answer

Account Closed, not all state statutes specifically address series LLCs. If yours doesn't I would be highly skeptical about the protection it would provide. If it does then you should be good to go. The only concern is that there is not nearly as much precedence supporting series LLCs as there are regular LLCs because they have not been around as long. In other words they have not been tested in courts and proven themselves as much. The law is the law, though, and if your state specifically says it is as good as any other LLC then it should be. Just recognize that you might be the case that sets precedence for everyone else.