The Delaware LLC Act yields a COPE called the "Series LLC." Within one entity (the Series LLC) are a number of "series" that can hold assets (like equipment) or entire segments of a business. Think of each series as a "virtual bucket" to hold title to property and be solely liable for it's own liabilities, including successful future tort claims.
How might a Series LLC be used by doctors?
- a urology practice might establish a Series LLC and put a lithotripsy machine in one bucket and a CT scanner in another
- two gastroenterology groups might want to use a Series LLC to aggregate their businesses for the sake of negotiating insurance reimbursements but keep their assets, liabilities and cash flows in separate buckets for other purposes
- a physician-turned-real-estate-mogul might want to store each of his rental properties in a separate bucket under the LLC to shield one property from potential liabilities of the others
As I consider practical implications of the Series LLC, I can't help but think about the "control group" aspects that might be an issue for employer-sponsored retirement programs (aka "your 401k) and all the numerous tax and medicolegal implications of such arrangements. If you think a Series LLC might be right for your practice, it goes without saying that you should consult your CPA, your attorneys and your pension consultant.