Safeguard your assets with a Series LLC

A Series LLC is a type of LLC that has the unique ability to create separate and distinct cells (also known as "protected series") within the framework of a single LLC.

Each protected series resembles an independent LLC because they: (1) can do almost anything an LLC can do and (2) insulates the protected series' assets from the liabilities of the Series LLC and the other protected series. The Series LLC provides a framework that allows the members of the Series LLC to keep multiple assets/businesses separate while still operating under the umbrella of a single LLC. For this reason, a Series LLC is often used as an alternative to a multiple LLC structure.

The primary benefit of a Series LLC is the ability to silo or segment liabilities by using multiple protected series while only forming and maintaining a single state-registered entity (the Series LLC).

In addition to all of the benefits of a traditional LLC, a Series LLC has the following advantages: (1) it can protect multiple assets better than a single traditional LLC (as each protected series insulates the asset(s) it owns from the liabilities of the LLC and the other protected series), and (2) it is a single entity (LLC) and therefore only requires the filing of one Certificate of Formation with the Texas Secretary of State (and one filing fee), one bank account, one bookkeeping account, etc.

A Series LLC can be used, for example, by a real estate investor who owns multiple properties. Each property would be held by a separate protected series. If property 1 is owned by protected series 1 and a tenant in property 1 files a slip and fall lawsuit, the proper defendant would be protected series 1. If a judgment is rendered in favor of the tenant and remains unpaid, the injured tenant/judgment holder would be able to seize only the assets of protected series 1 (i.e., property 1). Therefore, the remaining assets of the Series LLC and the other protected series are protected.