Realty411 Magazine A Spotlight on Charles and Lena Sells | Page 67
– Each subsidiary is a separate and distinct company
from the master and keeps their own respective
books and records.
– Separate EIN (Employer Identification Numbers)
are obtained and maintained to segregate bank
accounts of each subsidiary.
– All agreements, contracts, deeds and notes, etc are
signed in the name of the respective subsidiary LLC.
– Each subsidiary name should include the name of
the master in its title, thus providing notice or
disclosure to the subsidiary’s existence. i.e. “XYZ
Subsidiary, a Series of (Name of Master) LLC”
– Each subsidiary is to be properly capitalized with no
one subsidiary comingling funds or ownership
interest in another.
We have a very simple philosophy in our company
which states, "Documentation Beats Conversation". If
each subsidiary is to be treated and respected as a
separate company with its own legal personality, then it
must behave accordingly. The more you are able to
document the distinct business activities of each
subsidiary, onefromtheother, the greater your
opportunity will be for a court of law to uphold
segregating the assets and liabilities of each subsidiary
company within your 'Series' LLC.
For more information on how to properly form and
use a Series LLC, please contact our offices for your free
private asset protection consultation. ♦
Sincerely,
Jay Butler
Managing Director
"Documentation
Beats
Conversation"
67