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Your email address will not be published.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 2021

    The Strong Firm prevails in dispositive motion regarding Texas economic loss rule resulting in dismissal of claims again party.

    Read More
  • Spring 2019

    The Strong Firm successfully forecloses first priority lien against multi-million dollar commercial asset.

    Read More
  • Spring 2021

    The Strong Firm secures writ of reentry after unlawful lockout of commercial tenant.

    Read More
  • Spring 2021

    The Strong Firm prevails in writ of mandamus proceeding involving denial of temporary restraining order to stop foreclosure sale.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2021 Award
  • Clio Client-Centered Certification

Recent Blog Posts

Happy Independence Day – We Are Open For Business

Happy Independence Day! We Are Most Certainly Open For Business! Independence Day invokes feelings of individual freedom and independence being the basis on which our great country was founded.  Over the course of the last 15 months, few things have been entirely certain.  Markets, along with the availability of workers,
Read More
Happy Independence Day – We Are Open For Business

Residential Real Estate: Lawyers, Title Companies, and Agents, Oh My!

Residential Real Estate: Lawyers, Title Companies, and Agents, Oh My!   The evolution of the internet and rapid increase in access to information has changed the way we buy and sell homes. While real estate agents still serve a vital role in the process on both sides of the transaction, many buyers
Read More
Residential Real Estate: Lawyers, Title Companies, and Agents, Oh My!

COMMUNITY AND SEPARATE PROPERTY IN TEXAS: OWNERSHIP AND CONTROL

COMMUNITY AND SEPARATE PROPERTY IN TEXAS: OWNERSHIP AND CONTROL Texas law characterizes property acquired by spouses either community or separate property when property is acquired, and this characterization has tremendous consequences. w defines a spouse’s "separate property" as: (1) property owned or claimed by the spouse before marriage; (2) property acquired during
Read More
COMMUNITY AND SEPARATE PROPERTY IN TEXAS: OWNERSHIP AND CONTROL

Scams in Times of Disaster and Emergency

Scams in Times of Disaster and Emergency While Texans are generally prepared for major weather-related disasters during hurricane season from June through October, occasionally a rogue weather event, such as an artic blast, sweeps across the state causing severe and unanticipated property damage to residential and commercial properties. As individuals and
Read More
Scams in Times of Disaster and Emergency
  • 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.
Contact us

Quick Contact Form