HB1611 Summary

• Establishes the Uniform Protected Series Act in Arkansas Code Title 4, Chapter 41, allowing limited liability companies to create protected series as separate legal entities with their own assets, liabilities, and management.

• Protected series function as distinct persons from the parent company and other protected series, providing liability protection where debts and obligations of one series do not automatically bind others or the parent company.

• Defines procedures for establishing protected series including filing designations with the Secretary of State, naming requirements (must include company name plus "Protected Series" or "PS"), and requirements for associated members and assets.

• Allows series LLCs to conduct entity transactions (mergers) only with other domestic LLCs, with detailed rules for how protected series are handled during mergers (relocated, continued, or dissolved).

• Applies to foreign series LLCs doing business in Arkansas and requires disclosure of protected series information in legal proceedings; effective October 1, 2019, with transitional provisions for existing companies.