LLC formation and maintenance in TX, TN, FL
Investor · New York City, NY · Member since 2016 · 8 posts · 2 votes
LLC formation and maintenance in TX, TN, FL
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Attorney · Spanish Fork, UT · Member since 2025 · 77 posts · 98 votes
1yHi Parker,
This is a great question, and given the markets that you're in you do have some great potentially more affordable options.
First, both TX and TN recognize "Series LLC's" which can be great options for optimizing asset protection and separation of properties at a lower cost than 1 LLC per property. The way it works is that you set up a Series LLC, then you setup individual "Series" or "Cells" under the series LLC for each property. These cells as recognized as separate entities from an asset protection perspective, but can be significantly cheaper to setup and maintain (no or minimal state filing fee and/or annual renewal for the cells). Thus, you could have just one series LLC in TX and one in TN, with each having individual cells for each property in those respective states. I do typically recommend individual bank accounts for each cell but I see some variance on this and you can sometimes forego individual bank accounts in favor of just a single bank account in the series LLC as long as you have strong bookkeeping that meticulously separates income, expenses, etc. of each cell (e.g. by using a classing or similar bookkeeping system).
It is important to note, however, that TN has a franchise tax that requires careful structuring to avoid by ensuring that the entity structure qualifies for the FONCE (Family-Owned Non-Corporate Entities) exemption. Thus, while I always recommend working with qualified attorneys and tax professionals, it is especially important to do so in states like TN where you could easily dramatically increase your tax liability if things are not set up appropriately.
In Florida, land trusts present a unique opportunity. By statute, Florida has provided asset protection benefits to land trusts. This coupled with the fact that Florida has not generally provided very strong asset protection to LLCs, Single-Member LLCs in particular, Land Trusts can both help fill that gap while also being a more affordable option. I often recommend using Land Trusts for each property with those land trusts all being owned by a single FL LLC. In this scenario the FL LLC acts similarly to the series LLCs in states like TX, and the Land Trusts act like the cells to own the individual properties. The nice thing is that Land Trusts are often much cheaper to setup, have no annual fee (they are not filed with the state), and don't even need to have their own bank accounts (all banking/accounting can be done at the FL LLC level).
The idea behind separate entities for each property, be it cells, land trusts (FL), or LLCs, is to silo off the assets from each other to prevent one assets liabilities from exposing other assets, thereby minimizing the amount of exposure that you have to a single lawsuit or incident.
Note: This information is for
educational and informational purposes only and does not constitute legal,
tax, or financial advice. No attorney-client, fiduciary, or professional
relationship is established through this communication.
13 Replies
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes1y
Quote from @Parker Zhou:
Hi - currently have 12 doors and am looking to start moving them into LLCs. I'm looking for some best practices on starting and maintaining LLCs in TX, TN and FL (on a cheap basis…not trying to do everything using a service or having each single family home in each LLC as that would make costs balloon out of control). Mostly looking for advice on whether people filled themselves (or if they have a service they recommend), whether they have a separate bank account for each LLC, what they did for insurance and what they did for the various annual filing requirements. Thanks
I definitely have a separate llc and bank account for each property. But these are multi family properties I own. As far as taxes, that’s for your cpa. As for filing requirements, each of those states has separate rules regarding filing requirements but they aren’t super onerous honestly.
When I first got into real estate I hired attorneys to do this stuff but it’s so dang easy I do it all myself now.
- Investor · New York City, NY · Member since 2016 · 8 posts · 2 votes1y
Quote from @Dominic Mazzarella:
Quote from @Parker Zhou:
Hi - currently have 12 doors and am looking to start moving them into LLCs. I'm looking for some best practices on starting and maintaining LLCs in TX, TN and FL (on a cheap basis…not trying to do everything using a service or having each single family home in each LLC as that would make costs balloon out of control). Mostly looking for advice on whether people filled themselves (or if they have a service they recommend), whether they have a separate bank account for each LLC, what they did for insurance and what they did for the various annual filing requirements. Thanks
I definitely have a separate llc and bank account for each property. But these are multi family properties I own. As far as taxes, that’s for your cpa. As for filing requirements, each of those states has separate rules regarding filing requirements but they aren’t super onerous honestly.
When I first got into real estate I hired attorneys to do this stuff but it’s so dang easy I do it all myself now.
Hi Dominic - do you have any suggestions on who to use for a Registered Agent? Think I need one in state and can't just use my out-of-state mailing address.
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes1y
Quote from @Parker Zhou:
Quote from @Dominic Mazzarella:
Quote from @Parker Zhou:
Hi - currently have 12 doors and am looking to start moving them into LLCs. I'm looking for some best practices on starting and maintaining LLCs in TX, TN and FL (on a cheap basis…not trying to do everything using a service or having each single family home in each LLC as that would make costs balloon out of control). Mostly looking for advice on whether people filled themselves (or if they have a service they recommend), whether they have a separate bank account for each LLC, what they did for insurance and what they did for the various annual filing requirements. Thanks
I definitely have a separate llc and bank account for each property. But these are multi family properties I own. As far as taxes, that’s for your cpa. As for filing requirements, each of those states has separate rules regarding filing requirements but they aren’t super onerous honestly.
When I first got into real estate I hired attorneys to do this stuff but it’s so dang easy I do it all myself now.
Hi Dominic - do you have any suggestions on who to use for a Registered Agent? Think I need one in state and can't just use my out-of-state mailing address.
Honestly, I’d go with a cheaper option. So long as the registered agent has good reviews. What they do is quite simple and there’s no need to overpay for that service.
- Member since 2019 · 14 posts · 13 votes1y
I have read that the Wyoming LLC offers the most protection in terms of privacy, and then combining it with a Trust for the upmost security.
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes1y
Quote from @Brandon Arce:
I have read that the Wyoming LLC offers the most protection in terms of privacy, and then combining it with a Trust for the upmost security.
Honestly, this is a question for an attorney. The legal implications of what you’re asking are best not answered on a public forum like this where no one else is affected by the advice but you. I don’t mean that to be rude one bit, but for your own protection, I’d book a short call/email with your real estate attorney.
- Attorney · Spanish Fork, UT · Member since 2025 · 77 posts · 98 votes1y
Hi Parker,
This is a great question, and given the markets that you're in you do have some great potentially more affordable options.
First, both TX and TN recognize "Series LLC's" which can be great options for optimizing asset protection and separation of properties at a lower cost than 1 LLC per property. The way it works is that you set up a Series LLC, then you setup individual "Series" or "Cells" under the series LLC for each property. These cells as recognized as separate entities from an asset protection perspective, but can be significantly cheaper to setup and maintain (no or minimal state filing fee and/or annual renewal for the cells). Thus, you could have just one series LLC in TX and one in TN, with each having individual cells for each property in those respective states. I do typically recommend individual bank accounts for each cell but I see some variance on this and you can sometimes forego individual bank accounts in favor of just a single bank account in the series LLC as long as you have strong bookkeeping that meticulously separates income, expenses, etc. of each cell (e.g. by using a classing or similar bookkeeping system).
It is important to note, however, that TN has a franchise tax that requires careful structuring to avoid by ensuring that the entity structure qualifies for the FONCE (Family-Owned Non-Corporate Entities) exemption. Thus, while I always recommend working with qualified attorneys and tax professionals, it is especially important to do so in states like TN where you could easily dramatically increase your tax liability if things are not set up appropriately.In Florida, land trusts present a unique opportunity. By statute, Florida has provided asset protection benefits to land trusts. This coupled with the fact that Florida has not generally provided very strong asset protection to LLCs, Single-Member LLCs in particular, Land Trusts can both help fill that gap while also being a more affordable option. I often recommend using Land Trusts for each property with those land trusts all being owned by a single FL LLC. In this scenario the FL LLC acts similarly to the series LLCs in states like TX, and the Land Trusts act like the cells to own the individual properties. The nice thing is that Land Trusts are often much cheaper to setup, have no annual fee (they are not filed with the state), and don't even need to have their own bank accounts (all banking/accounting can be done at the FL LLC level).
The idea behind separate entities for each property, be it cells, land trusts (FL), or LLCs, is to silo off the assets from each other to prevent one assets liabilities from exposing other assets, thereby minimizing the amount of exposure that you have to a single lawsuit or incident.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.- Investor · New York City, NY · Member since 2016 · 8 posts · 2 votes1y
Quote from @Ryan Coon:
Hi Parker,
This is a great question, and given the markets that you're in you do have some great potentially more affordable options.
First, both TX and TN recognize "Series LLC's" which can be great options for optimizing asset protection and separation of properties at a lower cost than 1 LLC per property. The way it works is that you set up a Series LLC, then you setup individual "Series" or "Cells" under the series LLC for each property. These cells as recognized as separate entities from an asset protection perspective, but can be significantly cheaper to setup and maintain (no or minimal state filing fee and/or annual renewal for the cells). Thus, you could have just one series LLC in TX and one in TN, with each having individual cells for each property in those respective states. I do typically recommend individual bank accounts for each cell but I see some variance on this and you can sometimes forego individual bank accounts in favor of just a single bank account in the series LLC as long as you have strong bookkeeping that meticulously separates income, expenses, etc. of each cell (e.g. by using a classing or similar bookkeeping system).
It is important to note, however, that TN has a franchise tax that requires careful structuring to avoid by ensuring that the entity structure qualifies for the FONCE (Family-Owned Non-Corporate Entities) exemption. Thus, while I always recommend working with qualified attorneys and tax professionals, it is especially important to do so in states like TN where you could easily dramatically increase your tax liability if things are not set up appropriately.In Florida, land trusts present a unique opportunity. By statute, Florida has provided asset protection benefits to land trusts. This coupled with the fact that Florida has not generally provided very strong asset protection to LLCs, Single-Member LLCs in particular, Land Trusts can both help fill that gap while also being a more affordable option. I often recommend using Land Trusts for each property with those land trusts all being owned by a single FL LLC. In this scenario the FL LLC acts similarly to the series LLCs in states like TX, and the Land Trusts act like the cells to own the individual properties. The nice thing is that Land Trusts are often much cheaper to setup, have no annual fee (they are not filed with the state), and don't even need to have their own bank accounts (all banking/accounting can be done at the FL LLC level).
The idea behind separate entities for each property, be it cells, land trusts (FL), or LLCs, is to silo off the assets from each other to prevent one assets liabilities from exposing other assets, thereby minimizing the amount of exposure that you have to a single lawsuit or incident.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.Hi Ryan - do you have any recommendations in any of those states of professionals who are familiar with this setup? thanks
- Attorney · Spanish Fork, UT · Member since 2025 · 77 posts · 98 votes1y
Quote from @Parker Zhou:
Quote from @Ryan Coon:
Hi Parker,
This is a great question, and given the markets that you're in you do have some great potentially more affordable options.
First, both TX and TN recognize "Series LLC's" which can be great options for optimizing asset protection and separation of properties at a lower cost than 1 LLC per property. The way it works is that you set up a Series LLC, then you setup individual "Series" or "Cells" under the series LLC for each property. These cells as recognized as separate entities from an asset protection perspective, but can be significantly cheaper to setup and maintain (no or minimal state filing fee and/or annual renewal for the cells). Thus, you could have just one series LLC in TX and one in TN, with each having individual cells for each property in those respective states. I do typically recommend individual bank accounts for each cell but I see some variance on this and you can sometimes forego individual bank accounts in favor of just a single bank account in the series LLC as long as you have strong bookkeeping that meticulously separates income, expenses, etc. of each cell (e.g. by using a classing or similar bookkeeping system).
It is important to note, however, that TN has a franchise tax that requires careful structuring to avoid by ensuring that the entity structure qualifies for the FONCE (Family-Owned Non-Corporate Entities) exemption. Thus, while I always recommend working with qualified attorneys and tax professionals, it is especially important to do so in states like TN where you could easily dramatically increase your tax liability if things are not set up appropriately.In Florida, land trusts present a unique opportunity. By statute, Florida has provided asset protection benefits to land trusts. This coupled with the fact that Florida has not generally provided very strong asset protection to LLCs, Single-Member LLCs in particular, Land Trusts can both help fill that gap while also being a more affordable option. I often recommend using Land Trusts for each property with those land trusts all being owned by a single FL LLC. In this scenario the FL LLC acts similarly to the series LLCs in states like TX, and the Land Trusts act like the cells to own the individual properties. The nice thing is that Land Trusts are often much cheaper to setup, have no annual fee (they are not filed with the state), and don't even need to have their own bank accounts (all banking/accounting can be done at the FL LLC level).
The idea behind separate entities for each property, be it cells, land trusts (FL), or LLCs, is to silo off the assets from each other to prevent one assets liabilities from exposing other assets, thereby minimizing the amount of exposure that you have to a single lawsuit or incident.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.Hi Ryan - do you have any recommendations in any of those states of professionals who are familiar with this setup? thanks
@Parker Zhou We work in all of these states and could certainly walk you through these strategies and setup what you need. Send me a direct message and I would be happy to set something up.
- 1ySean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 871 votes
Quote from @Parker Zhou:
Hi - currently have 12 doors and am looking to start moving them into LLCs. I'm looking for some best practices on starting and maintaining LLCs in TX, TN and FL (on a cheap basis…not trying to do everything using a service or having each single family home in each LLC as that would make costs balloon out of control). Mostly looking for advice on whether people filled themselves (or if they have a service they recommend), whether they have a separate bank account for each LLC, what they did for insurance and what they did for the various annual filing requirements. Thanks
Certainly a bit biased here, but we would strongly recommend setting up LLCs for the properties, and ideally pairing them with a holding company in WY, DE, or NV to fully separate the risks and liabilities of each of the properties from your own personal liability, and vice versa. Your best protection will come by having each property in it's own LLC as well, though at minimum one per state. The goal of insurance is to accept your money and not make any payments out, whereas a structure of LLCs is designed and owned 100% by you and for your protection. FL and CA are each a bit of a unique scenario as well, so if you want to reach out directly, I'm happy to talk one-on-one about the details.
This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No CPA-client, fiduciary, or professional relationship is established through this communication.
- 1yAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I don't have anything to add on a legal perspective. However, if you and your spouse owner, I would recommend not having a multi-member LLC. This avoids another tax filing and you don't get any additional benefit. Single member LLCs are preferred.
Brick House CPAs53 Reviews - 1yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Parker Zhou Before you create a series LLC or a land trust speak to the types of lenders you will rely upon to finance your real estate. In many cases the types of lenders who finance real estate portfolios such as yours will not be familiar or comfortable lending to a borrower with these set ups. This can present operational challenges for your portfolio. Finding the correct balance between asset protection and operations are important, and something many miss.
- 10moJason MalabuteBusiness MemberAccountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 903 votes
I tend to lean toward setting up LLCs for rental properties, especially when you’re trying to separate liability between your rentals and your personal assets. In many cases, pairing your property LLCs with a holding company in a state like WY, DE, or NV can give you an additional layer of protection.
In my experience, the cleanest structure is having each property in its own LLC—at minimum, one LLC per state where you hold rentals. Insurance is there to cover claims, but it's not designed to shield you from every situation. LLCs, on the other hand, are intentionally designed to create that legal separation and keep everything 100% owned by you for protection.
Florida and California each have their own quirks in how LLCs work, so the specifics can vary. If anyone wants to talk through the details of their situation, I’m happy to walk through it one-on-one.
This is general educational information only and not legal, tax, or financial advice. No client relationship is formed through this post.
Malabute & Company CPAs525 Reviews - 10moBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
Eventhough TX and TN do not have a state income tax, you may have to file an LLC Tax return in those states.
Best of luck!
Basit Siddiqi CPA4.979 Reviews
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