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Updated almost 6 years ago on .
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LLC & Series feedback
Wanted to get some informal BP feedback on legal entities, and realize this is not legal advise.
I wanted to learn more about setting up legal entities for REI. After finding a mention of a law firm which specializes in REI law here on BP, reviewed its site & scheduled an appointment. The appointment went well, learned a fair bit, liked the overall concept which was proposed and quoted: a solution incorporating traditional LLCs, series LLCs & trusts in the $7k range.
My concerns: Series LLC have been around ~ 20 years now, and can only be formed by some US states. As I intend to purchase properties across various states (some of which are where Series cannot be formed), I am wondering about the legal uncertainty surrounding Series as well as the potential difficulties of using it across state lines.
Thanks in advance!
Most Popular Reply

Not quite, but it is a good clarification. Every state has an internal liability shield for LLCs and that is what is analyzed in every state: the LLC Internal liability shield of the state you're being sued in. The limiting factor is that some states have not adopted the legislation to form a Series LLC within that state.
For example, if I form a Texas Series LLC and have a property in Florida held by one of the "child series," then if there is legal action the property will be analyzed against Florida's internal liability shield. There are still only a handful of states that allow the creation of the Series LLC, but you can still be protected with a Series LLC in all 50 states - it's just that the different "series" are analyzed different in different states due to their bent on the internal liability shield.