Should I have a Series LLC for my rental properties?
Some people may ask what is a Series LLC and why would I need one? The Series LLC concept was created by the Texas Legislature and is in Chapter 101 of the Texas Business Organizations Code as a form of LLC. A LLC allows for the limiting or compartmentalizing of liability to protect other assets. If you own rental properties, you could create a LLC for each property but you would have to file a tax return for each LLC. The Series LLC allows for the creation of a Series for each property which are tied to a LLC whereby each Series has its individual limited liability. Proper language should be used in both the Certificate of Formation and the Company Agreement to properly establish a Series LLC. Additional Series can be added to the LLC by amending the Company Agreement and filing an Assumed Name Certificate. This allows for the filing of one tax return with a schedule for each property and it saves on LLC filing fees. If you have rental properties and would like to establish a Series LLC, please contact the Law Office of Roy Neal Linnartz, PLLC and we would be happy to help, (830) 625-9300.