Protected Series LLCs Now Available in Florida: What You Should Know
By: Zoey Chotiner
Florida business owners have a new option for structuring their companies. Effective July 1, 2026, Florida’s new series LLC law lets a single parent LLC create multiple protected series. For business owners managing multiple properties, investments, or ventures, a protected series LLC may offer an alternative to forming several independent LLCs.
What is a Protected Series LLC?
A Florida protected series LLC is a new type of Florida limited liability company that can designate one or more protected series. A protected series is a legally distinct portion of an LLC, but it is not a separate legal entity and does not have its own record or document number on Sunbiz.
Instead, a single parent LLC can create one or more internal divisions, or protected series, that function much like standalone entities for certain purposes. Each protected series can have its own assets, liabilities, business activities, members, and managers. This new structure may help reduce costs and simplify operations for business owners with multiple ventures.
Think of this like an apartment building. The building is the parent LLC, while each apartment is a protected series. Each unit is part of the same building, but each has its own locked door and separate contents.
A Florida LLC may establish a protected series by filing a Designation of Protected Series with the Florida Department of State. Each protected series has two parts. The first part must begin with the full name of the parent LLC. The second part must include a protected series identifier, such as “PS,” “P.S,” or “Protected Series.” The name must also be distinguishable from the other protected series and cannot include identifiers associated with other types of business entities, such as “GP” or “Incorporated.”
What are the benefits of a Protected Series LLC?
Protected Series LLCs may be useful for business owners who manage multiple properties, investments, or business ventures and want to keep them separate without creating a new LLC for each one.
Real estate investors are a good example of who will benefit. An investor with several rental properties could place each property into its own protected series. If a lawsuit or debt is connected to one property, the other properties are usually kept separate and protected from that liability.
Entrepreneurs and family businesses may also benefit. For entrepreneurs, instead of forming a separate LLC for every business project, each one can operate under its own protected series while working under the same parent LLC. Entrepreneurs can do the same thing.
Another benefit is cost and administrative efficiency. Because an owner can create multiple protected series under a single parent LLC, there may be fewer formation filings, fewer registered agent fees, and less duplicative paperwork.
Protected series LLCs also provide flexibility because each series can have its own assets, managers, members, and business purposes. Florida will also recognize certain series LLCs formed in other states, which opens new business opportunities for businesses expanding in Florida.
How does the liability protection work?
A Protected Series LLC has two types of liability protection.
The first is the traditional “vertical” liability shield that comes with a regular LLC. This protects the owners personally from debts and obligations of the business.
The second is a newer “horizontal” liability shield that is created by the Florida protected series LLC. This helps keep the parent LLC and each protected series separate from one another. Simply, if one protected series has debts or gets sued, the assets of the other protected series and the parent LLC are usually protected from that liability.
However, the horizontal shield protection depends on keeping each series properly separated. Florida law requires clear records showing which assets and liabilities belong to each protected series. In practice, this could mean separate financial records, clear ownership documents, careful transaction tracking, and disciplined recordkeeping for every transaction.
Is a Protected Series LLC right for you?
Protected Series LLCs give Florida businesses a new and potentially useful way to separate assets, operations, and liabilities.
However, the structure is still new to Florida, so business owners should understand both its benefits and its requirements before deciding whether to rely on it. As the law continues to develop, legal counsel can help determine whether a protected series LLC is the right fit compared with using multiple traditional LLCs.
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It should be noted that I am not your lawyer (unless you have presently retained my services through a retainer agreement). This post is not intended as legal advice; it is purely educational and informational, and no attorney-client relationship shall result after reading it. Please consult your own attorney for legal advice. If you do not have one and would like to retain my legal services, please get in touch with me using the contact information listed above.
All information and references to laws, rules, regulations, and advisory opinions were accurate as of this time, but laws are constantly evolving. Please get in touch with me to ensure that the law governing your business is up to date. Thank you.
