The authors conclude that the Delaware series supplies a beneficial, efficient use of a combined contractual Delaware entity form when pooled with sensible, informed planning by sophisticated business attorneys. Such benefits are particularly noticeable in investment vehicles where managers embark to minimize risk by diversifying the fund’s assets or receive funding with specific covenants attached that limit the acceptable uses of the funds. The series is not, however, for general practitioners who have the occasional client wishing for the latest benefit Delaware has to offer its investors. To provide context, Parts II-IV of this article provide a brief overview of how the series structure evolved and introduces the reader to the Delaware Series. Next, Part V of this article sheds light on the Delaware series LLC and provides practitioners with a useful guide to facilitate forming this specialized business entity. Part VI answers some of the commonly asked questions about a Delaware series. Finally, Part VII of this article addresses the common mistakes made by practitioners when forming a Delaware LLC series.
Ann E. Conaway & Peter I. Tsoflias,
The Delaware Series LLC: Sophisticated and Flexible Business Planning,
Mich. Bus. & Entrepreneurial L. Rev.
Available at: http://repository.law.umich.edu/mbelr/vol2/iss1/3