LLC Formation/ Series LLC Formation
A limited liability company is a type of business organization allowed by state law. The LLC was mainly created to limit the personal liability of the owners (like a corporation), but also to allow the business to be taxed like a partnership.
Limited Liability Companies are particularly useful for real estate investors. Depending on the number of properties, an LLC may be formed and then the properties are deeded into the LLC. This shields the invidual(s) making up the LLC from personal liability as it relates to the properties within the LLC.
A series LLC in Texas is a variant of a limited liability company that can create sub LLCs, called series, within the main company. Each series has separate rights, obligations, liabilities, and business purposes from the general LLC and the other series. This can protect the assets and members of each series from the claims of creditors or lawsuits. A series LLC is a legal option in only some states, including Texas. Each series can operate as a stand-alone legal entity in different states. The series LLC refers to the parent LLC that owns or holds title to all property and assets in each series. For example, if an individual investor owns multiple properties, a Series LLC protects the individual as stated above, and also insulates each series (property) from the other series (properties).