When and why to use a custom Series LLC for your deals.
Custom Series LLCs enable customers to house their investments under a custom Series LLC. They are useful for firms with stricter brand and compliance requirements.
Every deal on Seed Labs—whether it's an SPV, fund, co-invest vehicle, or startup fundraise—is its own distinct legal entity housed underneath a Series LLC. The Series LLC name matters because each deal's legal entity name follows this format: "[Deal Name], a Series of [Series LLC Name]."
If you use our complimentary Series LLC, your deals will be named "[Deal Name], a Series of SLRTE I LLC." If you want tighter control over your branding or have compliance requirements, you can use a custom Series LLC branded in your firm's name.
Learn more about how deal naming works here.
Seed Labs offers a complimentary Series LLC called SLRTE I LLC that you can use free of charge. It is owned by Seed Labs, and is paid for to exist over the lifetime of your investment.
If you want tighter control over your brand, you may want to house all of your investments under one Series LLC that is branded in the name of your firm. This ensures your firm's name appears in every deal entity name.
Series LLCs use Delaware Section 18.215, which guarantees that each child LLC spun underneath the master Series LLC is fully distinct from the parent. Each child LLC owns its own assets, liabilities, ownership records, and bank accounts. There is no commingling of funds, and Delaware 18.215 minimizes any risk of issues at the master LLC flowing into issues at the child, or issues at any other children affecting other children.
If your counsel has independently determined that they would take greater comfort in the Series LLC being fully and only owned by your firm, then that's a great reason to spin up your own Series LLC.
| Option | Details | Cost |
|---|---|---|
| Use our complementary Series LLC | Turnkey series LLC (SLRTE I LLC), perfect for firms that want to have a simple, cost-effective way to house their deals. Paid for over the lifetime of your investment. | Free |
| Have Seed Labs form your own Custom Series LLC | Seed Labs provides template agreements, handles entity formation, and manages ongoing entity upkeep with Delaware as part of the Custom Series LLC service. | Flat fee per year plus filing fees |
| Bring your own pre-existing Series LLC | Seed Labs supports using pre-existing Series LLCs for your deals, pending a thorough due diligence process. Reach out to Seed Labs for more information. | Varies |
Creating a custom Series LLC takes 3-5 business days. Delaware boasts an expedited turnaround, but in our experience, it usually takes double the amount of time. If you have a fast moving deal, budget accordingly!
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