LLC / Business structure for protecting rental properties
What do you feel is the best business formation to have multiple properties under one entity with each property shielded from the others? From reading previous posts, I know Series LLCs may be a great option. Anyone have multiple properties and this type of formation?
I prefer real world examples over theory.
Lamar
Most Popular Reply
I can't speak to Texas law. However in general you can not shield properties in the same entity from each other. Yes series LLC can be use but each sub series LLC is a different entity. It can be an easy to set up and run separate entity but it is separate none the less.
Does Texas allow Series LLCs? If not does Texas expect you to register "foreign" entitles from other states? If you set up a DE series LLC and Texas requires you to register the LLCs in TX. then you may be losing any perceived benefit from the DE series.
Also Series LLCs are relatively new. You may think you have protection and then the courts shoot them down and you are stuck with risk you thought you were shielded from. In TX this is probably a much lower risk than for me here in MD.
It is ALL theory until a court rules on your specific situation. There are so many permutations of how it can be set up, many options simply haven't yet been tested.
Good luck - Ned