Limited liability companies (LLCs) are common in business, but a lesser-known variation — the Series LLC — is increasingly complicating accident claims. A Series LLC allows one “parent” company to create multiple “series” or sub-entities, each with its own assets and liabilities. While this structure offers flexibility and asset protection for businesses, it creates significant challenges for accident victims seeking compensation.

What Is a Series LLC?

A Series LLC is a single legal entity that can establish multiple independent “series.”

• Parent LLC: The overarching company that registers with the state.

• Individual Series: Sub-entities with separate assets, liabilities, and business operations.

• Legal Separation: Each series is treated as if it were its own LLC, shielding assets from claims against other series.

This structure is recognized in some states, including Delaware, Illinois, and Texas, but not universally across the U.S.

Why Series LLCs Complicate Accident Claims

Accident victims often struggle to identify the correct defendant when a Series LLC is involved.

• Asset Shielding: If the accident involves one series, victims may be barred from accessing assets of other series.

• Confusion in Records: Business filings may not clearly identify which series owns the vehicle or property involved.

• Jurisdictional Issues: States differ in how they recognize and enforce Series LLC structures.

This makes it harder for plaintiffs to recover damages, even when liability is clear.

Example Scenario

Imagine a trucking company organized as a Series LLC. One series owns the trucks, another handles logistics, and a third manages finances. If a truck causes an accident, the victim may only sue the series that owns the truck. The other series — with valuable assets — may be shielded from liability.

This creates a frustrating situation where victims face limited recovery despite the company’s overall wealth.

Legal Strategies for Plaintiffs

Lawyers use several strategies to overcome Series LLC barriers:

1. Piercing the Veil: Courts may disregard the separation between series if plaintiffs prove fraud or misuse.

2. Identifying Parent Liability: If the parent LLC exercised control over the series, it may be held liable.

3. Multi-State Arguments: In states that don’t recognize Series LLCs, plaintiffs may argue that the structure is invalid.

4. Discovery Requests: Attorneys demand detailed records to identify which series owns the assets involved.

These strategies require persistence and deep knowledge of corporate law.

Insurance Complications

Insurance coverage adds another layer of complexity:

• Separate Policies: Each series may carry its own insurance, limiting coverage to that series.

• Policy Gaps: Some series may be underinsured, leaving victims with inadequate compensation.

• Disputes Over Responsibility: Insurers may argue that liability rests with a different series, delaying payouts.

This mirrors broader insurance disputes in multi-state crashes, as discussed in Multi-State Crash Chains: When an Accident Crosses State Lines and Laws Collide.

Hidden Risks for Victims

Victims often don’t realize they are dealing with a Series LLC until litigation begins.

• Delayed Settlements: Identifying the correct defendant can take months.

• Reduced Recovery: Asset shielding may limit compensation.

• Increased Legal Costs: Complex structures require more attorney time and expert analysis.

These hidden risks make Series LLCs a powerful tool for businesses but a major obstacle for accident victims.

Broader Implications

Series LLCs highlight how corporate structures affect personal injury law. Just as decision-tree models secretly shape case valuation (see How Lawyers Secretly Use Decision-Tree Models to Value Cases), Series LLCs quietly influence accident outcomes by limiting liability. Both examples show how hidden legal tools can dramatically alter case results.

Series LLCs are a little-known but highly impactful structure in accident claims. By shielding assets and complicating liability, they make it harder for victims to recover damages. Lawyers must use advanced strategies to pierce these structures and secure fair compensation. As Series LLCs become more common, accident victims and attorneys must be prepared to confront this hidden entity structure head-on.