Texas Series LLC - Management Series

[Cathy Karowski]

I have formed a Series LLC for my rental properties. What are your thoughts on utilizing Protected Series 1 as the management protected series, responsible for managing the operations of the business? Protected Series 2 and on will hold separate pieces of property or operate different segments of the business. Many have suggested a two-company structure to separate assets from activities by forming a shell management company for dealings with tenants, vendors, and the public. It seems to me that utilizing one of the series for management activities accomplishes the same goal.

[Pete Harper]

At the advice of my TX attorney here is how my LLC is organized. I have a parent TX LLC. Then underneath this parent LLC I have a separate TX series LLC owned by the parent. Within the series LLC each property goes into a new series. It costs nothing to create a new series and you can have as many as you need. The parent and series LLCs have separate EIN numbers and file separate tax returns. The cost to set up Series LLC was $300 state filing plus $250 attorneys fee. This structure provides multiple layers of legal protection.