A few years ago, Delaware passed the creation of a so-called "Delaware Series" where several LLCs could be grouped together to file a consolidated return, but each LLC would have liability limited to its own assets. This would be ideal for a commercial owner of several buildings, where each building could be its own LLC, but have liability limited to the building only without a suer having access to the entire collection of buildings.

There have been several states follow the lead for the Delaware pattern. I believe Illinois is one. Nevada is another. But at this point I believe the states subscribing to this idea are still in the minority.

Since each entity is an LLC, it is not required that any of the LLCs have a capital structure such as capital stock with a corporation. And this would be true even if the LLCs choose to file as a corporation. Not having a capital structure does not, however, mean that each LLC fails to have ownership percentages as well as percentages for income and loss.

In order to qualify as a "Delaware Series" of LLCs, I do believe there must be at least 50% common ownership, meaning the door is open for minority interests. This affects the question at hand, which I will ask at this point.

If a Delaware Series consolidated return is filed for several LLCs, how is the percentage of income to be allocated? Each LLC may have its own stated ownership split, but when combined, how are K-1s issued when each LLC has its own unique arrangement? Would it be a weighted average based on total assets of each LLC? Total Equity? Does the consolidated return get to define its own formula? (That would be a hoot...)

[I don't expect many folks to respond to this, but anxious to hear from those of you who will]