As of July 1, 2026, Florida allows businesses to form a protected series LLC, which means a single LLC can create multiple internal “series,” each with its own assets, members, and liability shield. Florida joins a small group of states, including Delaware and Nevada, that offer this structure.
The Basics
Under new Sections 605.2101 through 605.2802 of the Florida Revised Limited Liability Company Act, an existing or newly formed Florida LLC (the “parent”) can designate one or more protected series by filing with the Florida Department of State. Each series is not a separate legal entity in the way a subsidiary LLC would be, but it is treated like one for liability purposes, meaning the assets and debts of one series are generally shielded from the liabilities of other series and from the parent company itself, provided the statutory formalities are followed.
The Catch
The liability shield is not automatic, and it isn't something a business secures once and then forgets. It is dependent on getting the formation right and then maintaining strict compliance on an ongoing basis.
On the formation side, each protected series must be named in accordance with Section 605.2202, Florida Statutes. The name must begin with the full name of the parent Series LLC and include the phrase "protected series" or the abbreviation "P.S." or "PS." Further, a protected series does not have its own operating agreement. Instead, it is governed by the operating agreement of the parent LLC, which should be expressly identified as a "protected series limited liability company." This operating agreement must address each series, to keep each series and parent obligation separate.
The biggest issue however, is on the ongoing side, each series is required to maintain its own separate bank accounts and records, with no commingling of funds or assets between series or with the parent company. Compared to formation, which is a one-time task, this requires sustained attention, and falling short of it can put the entire protected series benefits at risk.
Bottom Line
This is a genuinely useful new planning tool for the right business, but it requires precision in both formation and ongoing operation. If you’re considering a protected series LLC for existing or new businesses, it’s worth having counsel confirm both that the formation documents are correct and that your ongoing business practices will actually deliver the liability protection the statute promises.
