Does California Allow Series LLCs?
Does California allow series LLCs?
No. California does not permit series LLCs. Under California Corporations Code § 17702.01, the state authorizes only single-entity LLCs. A series LLC—available in Delaware, Nevada, and other states—allows one LLC to establish multiple segregated "series" with separate assets and liabilities. California's statutory framework contains no provision for this structure.
If you need liability compartmentalization across multiple business lines, you must form separate, standalone LLCs. Each LLC files its own Articles of Organization (Form LLC-1) with a $70 filing fee and operates as an independent legal entity.
What California Offers Instead
Standard Single-Entity LLC
California permits only member-managed or manager-managed LLCs under Cal. Corp. Code § 17702.01. You can operate multiple business divisions within one LLC, but they do not receive separate liability protection. All assets remain exposed to creditors of any division.
Multiple Separate LLCs
The most protective approach is forming distinct LLCs for each business line or asset class. Each entity files independently ($70 per filing) and maintains separate liability shields. Creditors of one LLC cannot reach another's assets. This achieves the compartmentalization that series LLCs provide in other jurisdictions.
Charging Order Protection
California provides charging order protection under Cal. Corp. Code § 17705.03. Creditors cannot seize LLC assets or force member buyouts; they receive only distributions if declared. This protection applies equally to all California LLCs, whether single or multiple entities.
Key Limitations
No Series Structure: California does not recognize series LLC provisions from other states. A Delaware series LLC operating in California receives no series treatment under state law.
No Professional LLCs: California prohibits Professional LLCs for regulated professionals. Attorneys, doctors, and accountants must use standard LLCs or professional corporations.
No Anonymous LLCs: Managers and members must be disclosed in the Statement of Information filing (Cal. Corp. Code § 17705.03).
Next Steps
- Determine entity count. Form one LLC per business line or major asset group you want protected.
- File Articles of Organization (Form LLC-1) for each entity online via BizFile ($70; 3–5 business days).
- Maintain separate records for each LLC to preserve liability protection.
For professional practices, consult your licensing board before filing.
This is general information, not legal advice.