Series llc texas purpose

Under texas law, a series llc is defined as an llc that provides in its governing documents for the establishment of a series of members, managers, membership interests, or assets that have separate rights, obligations and liabilities and business purposes from the general llc. Texas series llc explained series llc benefits cost of. Under texas law, a series llc is defined as an llc that provides in its governing. The texas series llc provides a means of insulating the assets of one series from the liabilities and obligations of the llc and the other series which is a significant advantage over a traditional llc where all assets would be available to satisfy the liabilities and obligations of the llc. For real estate investing holding purposes, a texas series llc is a means to own multiple real estate assets under one entity. A texas series llc can carry on any business, purpose, or activity that is not otherwise prohibited by texas llc law. Texas is one of a handful of states that recognize series limited liability companies.

The texas comptroller, for its purposes, states that a series llc is. Formation of texas entities faqs texas secretary of state. The series llc sllc includes a master or umbrella llc and other llcs which are separated from each other for liability purposes called cells. In terms of chapter 101 and tile 1 of the texas business organization code. A texas series llc is a limited liability company that has the ability to. A series of the llc is not a separate domestic entity or organization for purposes of title 1 and chapter 101 of the texas business. Series llc in texas pros and cons of a texas series llc. It pays one filing fee and registers as one entity with. Series llc benefits and drawbacks for your business. Flat fee series llc formations by a texas business formation attorney. How to start a series llc in texas how to start an llc. It files one franchise tax report as a single entity, not as a combined group, under its texas taxpayer identification number. What is a series llc in texas and why might you need one. Llc s are popular because they are simpler to form than a corporation while providing comparable liability protection.

If operated properly the debts, liabilities, obligations, and expenses incurred with respect to a particular subseries are enforceable only against the assets owned by. Texas series llc explained series llc benefits cost of series llc. The texas series llc shares similar characteristics and functions with the traditional texas llc, such as informal management, passthrough federal taxation, and an effective liability shield if all recordkeeping requirements and formalities are observed. Actionable guide to form a series llc in texas in 5 easy steps. A series limited liability company, commonly known as a series llc and sometimes abbreviated as sllc, is a form of a limited liability company that provides liability protection across multiple series each of which is theoretically protected from liabilities arising from the other series. A series llc texas is a variant of a traditional limited liability company llc that. A texas series llc is a traditional llc that has adopted special language within the governing documents to authorize the use of series or cells.