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Committee approves legislation to authorize series LLCs in Florida
Summary
SB 316 would permit creation of series limited liability companies in Florida, allowing an umbrella LLC with separate asset-protected child series; the committee reported the bill favorably after the sponsor described statutory protections and rules for foreign series LLCs.
Senator Berman told the Committee on Commerce and Tourism that SB 316 would authorize series limited liability companies (series LLCs) in Florida, allowing a parent LLC to form multiple separate sub–series with isolated assets, members and operations.
Berman said the structure is commonly used by entities that want to insulate separate lines of business—examples include real estate investors holding separate rental properties or investment firms using multiple strategies—and that 23 U.S. jurisdictions already allow series LLCs in some form. The bill would create a clear Florida statutory framework for forming domestic series LLCs and for how foreign series LLCs could transact business in the state.
The sponsor said the bill was lengthy because it must define how a foreign series would recognize and protect creditor and ownership rights and explained that, without Florida law, it can be difficult for Florida citizens and businesses to understand liabilities when dealing with a foreign series LLC formed under another jurisdiction’s rules.
Doug Bell signaled support from the hearing room. Senator Berman waived closing remarks and the committee reported SB 316 favorably on roll call; no amendments were adopted in committee.
