Search Site
Menu
The Texas Series LLC: The (Kind of) New Kid on the Block

TEXAS SERIES LLC BACKGROUND

On September 1, 2009, Texas joined Delaware, Illinois, Iowa, Nevada, Oklahoma, Tennessee and Utah as the handful of states in the U.S. at the time that permitted the formation of a relatively new entity type known as a Series limited liability companies (a “Series LLC”).

While a Series LLC shares many of the same characteristics and benefits as its older and more commonly known cousin, the traditional Texas LLC, the Series LLC differs in that it permits you to segregate the assets and liabilities of the company in several separate series.  The Series LLC provides a means of isolating the assets of one series from the liabilities of the other series within a single Series LLC.

The ability to divide assets, liabilities, and even the operation and management of the assets into wholly separate series, under the umbrella of one LLC, can be useful in reducing some of the costs and hassle associated with operating multiple related, but separate, entities.  Some Texas real estate investors are beginning to utilize the Series LLCs to hold and manage multiple rental properties, with each property being placed in a separate series and all the properties under one series LLC.

Because the series LLC allows you to establish multiple series of assets, members and managers  the debts, obligations and liabilities of each series will be enforceable only against the assets of that particular series, and will not be enforceable against the other series in the LLC or against the LLC as a whole.

Since the Series LLC is still a relatively new entity type in Texas, the case law and court rulings indicating how a court will treat a Series LLC are not as developed as other entity types such as the corporation and traditional LLC.   As time passes and more cases involving Series LLCs are litigated, we will be able to better analyze how the Texas court systems treat Series LLCs and insuring that the separated assets of each series are truly segregated from the liabilities of another series.

Eric R. Thiergood, Sr.

Phone: 281-367-1222

Fax: 281-210-1361

[email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact a Dedicated Texas Business Lawyer To Schedule a Consultation
Call 281-367-1222 or contact us online to schedule a meeting.

Strong In Action

  • Spring 2019

    The Strong Firm represents borrower in $42.3 million HUD construction loan for multifamily real estate development in Walton County, Florida.

    Read More
  • Spring 2019

    The Strong Firm acts as legal counsel for borrower in $32.1 million HUD construction loan for multifamily real estate development in Conroe, Texas.

    Read More
  • Spring 2019

    The Strong Firm aids borrower in $31.7 million HUD construction loan for multifamily real estate development in Nueces County, Texas.

    Read More
  • Spring 2019

    The Strong Firm represents borrower in the refinancing of a $3.57 million commercial mortgage-backed security for a commercial office facility in Montgomery County, Texas.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2019 Award

Recent Blog Posts

“So…What Happens to My Bitcoin When I Die?” Modern Estate Planning for Digital Assets and Cryptocurrencies

Millennials have complicated everything. Socializing in person wasn’t enough, so they created Facebook. Dollars weren’t enough, so they created Bitcoin. Every new app, technology or cryptocurrency brings with it more uncertainty legal uncertainty around these digital assets. Are they currency? Are they property? Can they be gifted? Can they be
Read More
“So…What Happens to My Bitcoin When I Die?” Modern Estate Planning for Digital Assets and Cryptocurrencies

A Win for Property Owners: New Texas Law Makes it Difficult for Forced Annexation

The State of Texas is a strong advocate for protecting property owners from the forced taking of land, including eminent domain, foreclosure or annexation. This year, the Texas Legislature enacted a bill that protects landowners for decades to come from forced annexation. In 1858, Texas passed the first statute allowing incorporation
Read More
A Win for Property Owners: New Texas Law Makes it Difficult for Forced Annexation

Wait… Lawyers Do That?

Since the founding of the Strong Firm P.C. in 2004, we have prided ourselves on not only providing excellent legal services, but also playing a large role in our community. Every year I have the opportunity to speak to area students from first grade through college grad students on legal-related
Read More
Wait… Lawyers Do That?

Part II – Probate: Identify the Most Efficient Probate Proceeding – Muniment of Title

Texas law provides several options to transfer ownership of a deceased person’s (usually called a “decedent”) property. We previously discussed the difference between a dependent and an independent administration. The dependent and independent administrations are used when the deceased person’s estate exceeds some minimal thresholds for size or complexity, such
Read More
Part II – Probate: Identify the Most Efficient Probate Proceeding – Muniment of Title
  • Video Vault


    Watch videos done by our legal team to gain a better understanding of your legal needs. Our lawyers give video insight into areas such as Real Estate, Business Law, Mergers & Acquisitions and much more.

Pay Retainer Online

Use our easy-to-use and secure online payment feature.
We accept all major credit cards.

Pay Your Retainer

Contact us

Quick Contact Form