What is a Series LLC?
A Series LLC is a type of limited liability company that allows you to create multiple “series” or “cells” under one umbrella LLC. Each series can have its own assets, members, and management. The key benefit is liability segregation—what happens in one series doesn’t legally affect the others.
In Alabama, series LLCs are permitted and increasingly popular for entrepreneurs managing multiple properties or business ventures. For example, a landlord might place each rental property in its own series to isolate liabilities.
But be aware: series LLCs add a layer of complexity. They’re not universally understood by banks, insurers, or courts, and they require meticulous bookkeeping to maintain the separation between series.
What is a Professional LLC?
A Professional LLC, or PLLC, is specifically tailored for licensed professionals—doctors, lawyers, architects, and similar fields. Alabama law mandates that if your profession requires a state license, you must form a PLLC instead of a standard LLC.
Every owner of a PLLC must be licensed in the profession the company serves. You can’t form a general LLC and offer legal or medical services—that could get you into regulatory hot water fast.
PLLCs don’t offer malpractice protection (no entity does), but they do shield you from personal liability for business debts or another partner’s wrongdoing.
Key Differences Between Series LLC and Professional LLC
So, let’s break down the decision—series LLC vs professional LLC Alabama—into three fundamental differences.
1. Eligibility and Purpose
Series LLC: Open to any business or investor. Ideal for compartmentalizing operations or assets—like real estate holdings or multiple brands. Professional LLC: Only for licensed professions. It’s a legal structure built around state licensing requirements.
2. Liability Segregation
Series LLC: Offers internal liability protection. Trouble in one series shouldn’t affect another—assuming all legal and administrative requirements are met. Professional LLC: No internal divisions. Liability protections apply at the company level, and each professional remains liable for their conduct.
3. Flexibility and Complexity
Series LLC: Complex. Requires robust records to preserve legal boundaries between series. Some lenders or courts may hesitate to work with them. Professional LLC: Straightforward for licensed practitioners. Meets state regulations but doesn’t offer special internal structuring.
Choosing Between series LLC vs professional LLC Alabama
Here’s the bottom line: your profession and your business strategy largely determine the right fit.
If you’re a licensed professional, like a CPA or dentist, your hands are tied—you’re required to form a PLLC. Period.
But if you’re an investor with multiple rental properties or running several side hustles, a series LLC might save you time and filing costs while keeping your assets protected in silos.
Still not sure? Ask yourself:
Do I need to isolate liability between different parts of the business? Am I offering licensed professional services? Will a standard LLC serve my needs more efficiently?
In many cases, seeing a qualified business attorney is your best move. Alabama’s rules are detailed, and misclassification can lead to costly compliance headaches later.
Compliance and Maintenance in Alabama
Regardless of your structure, Alabama has specific filing and renewal requirements.
For series LLCs:
You must clearly list the parent LLC and any series in your operating agreement. Each series should maintain separate books and banking. The series must operate independently to preserve liability separation in court.
For professional LLCs:
All members must hold active licenses in their profession. The company must register and be approved by the governing licensing board. Naming requirements often involve including “PLLC” to signal its professional nature.
Filing fees and annual reporting are similar for both types, but the internal management burden is heavier for a series LLC.
Final Thoughts on series LLC vs professional LLC Alabama
Choosing between a series LLC vs professional LLC Alabama comes down to what you do—and how you plan to scale.
Series LLCs offer real benefits for real estate investors, ecommerce sellers, or projectbased entrepreneurs. But they demand discipline in operations and accounting. Professional LLCs are a nobrainer for licensed workers who want legal compliance and liability protection tailored to their field.
Neither one is inherently better. The right pick is the one that fits your business model, industry, and risk tolerance.
If there’s any doubt, a consultation with an attorney versed in Alabama business law is worth the investment. The map to your business future starts with the right paperwork.
