Series LLC in California — Not Available

California has NOT enacted Series LLC legislation. Unlike Texas, Delaware, or Illinois, California does not authorize the creation of internal series with separate liability shields. If you need liability isolation between different properties or businesses, you must form separate California LLCs — each owing the $800 annual franchise tax. See all LLC types or our formation guide.

Impact on California Businesses

Real estate investors: Cannot use one Series LLC for multiple properties. Each property needing separate protection requires its own LLC — at $800/year each. Five properties = $4,000/year in franchise tax alone.

Multi-brand businesses: Each brand needing liability isolation requires a separate LLC ($800/year each).

The $800 multiplier: This is what makes California's lack of Series LLC particularly painful. In Texas, a Series LLC costs $300 one-time for unlimited series. In California, each separate LLC costs $70 to form + $800/year perpetually.

Alternatives

1. Fewer LLCs with strong insurance: Use one LLC for multiple activities, with robust liability insurance to cover cross-exposure. Cheaper but less legally protective.

2. Form in another state: Form a Series LLC in Texas or Delaware. But if properties/operations are in CA, you must register each foreign LLC in CA — each paying $800/year anyway. No escape if CA operations exist.

3. Group lower-risk activities: Put 2-3 related low-risk activities in one LLC. Reserve separate LLCs only for highest-liability activities.

4. Holding company structure: One parent LLC owns interests in 2-3 operating LLCs. Does not reduce the number of entities or fees.

FAQ

Will California ever adopt Series LLCs?

There have been discussions but no legislation has been introduced or passed. The California Revised Uniform LLC Act (2013 revision) did not include series provisions. Do not plan on future adoption.

Can I form a Texas Series LLC and avoid CA's $800 per entity?

Only if you have NO California presence for those series. If any series conducts business in CA, it likely owes $800/year . The IRS treats each series as a separate entity — and California likely follows.