Florida's New Series Limited Liability Company (LLC) Law
The Sunshine State is leveling up its business landscape! Thanks to the passage of Florida Senate Bill 316 (now law, effective July 1, 2026), Florida entrepreneurs and investors will soon be able to form a Domestic Series LLC. This is a major development that brings Florida in line with asset-protection powerhouses like Delaware, offering a flexible and efficient new way to manage multiple ventures.
What is a Domestic Series LLC?
Think of a Series LLC like a single, "parent" Limited Liability Company (LLC) that acts as an umbrella for multiple internal divisions, known as "protected series" or simply "series."
Crucially, each protected series can:
Have its own distinct assets.
Incur its own liabilities and debts.
Have different members and managers.
Conduct its own business operations.
The Big Benefits of the Series LLC Structure
The appeal of the Domestic Series LLC lies in its twin advantages of liability protection and administrative efficiency:
Enhanced Liability Protection (The "Horizontal Shield")
The hallmark of this structure is the "horizontal" liability shield. In simple terms, the debts, obligations, and liabilities of one series are solely those of that series.
If Series A gets sued, the assets of the parent LLC and all other series (Series B, Series C, etc.) are protected from the creditor's claims.
This is a massive benefit for real estate investors who can place each property into a separate series, or for entrepreneurs with multiple lines of business who want to isolate the financial risk of each venture.
Streamlined Administration and Cost Savings
Instead of forming, filing for, and maintaining multiple traditional LLCs—each with its own state filing fee and annual report—a Series LLC allows you to manage multiple assets or ventures under a single parent entity:
Lower Formation Costs: You generally pay one major state filing fee for the parent LLC, plus a smaller fee for each protected series designation, saving money compared to forming many separate LLCs.
Reduced Paperwork: You typically only need to file one annual report for the parent LLC, drastically reducing administrative time and effort.
Centralized Governance: The overall operation of all series can be governed by a master operating agreement, simplifying management.
Important Next Steps
While this new law offers incredible benefits, maintaining the liability shield is not automatic. The new Florida law requires strict recordkeeping to separate the assets and liabilities of each protected series. Failure to keep clear, separate records for each series can lead to a court disregarding the liability protection.
Florida's adoption of the Series LLC cements its reputation as a business-friendly state. If you own multiple distinct assets or operate several business lines, the Domestic Series LLC could be the ideal structure to segregate your risks and simplify your life.
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