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ARTICLE · 26 APRIL 2016

Tennessee Series LLC Basics: Liability Separation With A Single Entity

What is a "Series LLC"? It's a limited liability company that has elected to allow the creation of separate series.

United StatesCorporate/Commercial Law

What is a “Series LLC”?  It's a limited liability company that has elected to allow the creation of separate series.  According to the statute:

Notwithstanding anything to the contrary set forth in this chapter, or under other applicable law, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing, with respect to a particular series established . . . shall be enforceable against the assets of such series only, and not against the assets of the LLC generally, or any other series of the LLC . . .

T.C.A. § 48-249-309.  This broad provision allows for the segregation of liabilities into each series, without having to form separate LLCs. As stated above, the segregation is allowed notwithstanding other provisions of the Revised Limited Liability Company act, and it's even allowed regardless of other applicable law.

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