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Your email address will not be published.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

2019 Legislative Update – Texas POA Laws

In odd numbered years, Texas property owners associations (POAs) must consider any new laws affecting POAs that became effective following the Texas legislative session earlier that year. For 2019, a few such laws recently went into effect specific to residential POAs (but excluding condominium associations). HOUSE BILL 234 – Protection of
Read More
2019 Legislative Update – Texas POA Laws

Wrapping Up a Decade: Meaningful New Year’s Resolutions

As 2019 comes to a close, it’s a good opportunity to reflect on what we’ve accomplished and make resolutions for what we hope to do in 2020. I have never been a fan of New Year’s resolutions as they often seem like short-term, immeasurable goals. Things like “I am going
Read More
Wrapping Up a Decade: Meaningful New Year’s Resolutions

Not Worth the Paper It’s Written On

We have all heard the saying that something is “not worth the paper it is written on.”  This is usually said about a contract that is unenforceable or even if enforceable, it may have no value because the party has no ability to pay or perform under the contract.  Many
Read More
Not Worth the Paper It’s Written On

“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
  • 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