Series LLC: Texas Is Latest State To Add Series LLC Option
I occasionally get phone calls about Delaware Series LLC. A "series LLC" is one parent LLC which owns several subsidiary LLCs. Each subsidiary LLC is a separate legal entity. People who own several similar assets, such as multiple rental properties, often use a series LLC where each property is owned by a separate subsidiary LLC. Series LLCs are also used to avoid sales tax associated with rental payments between two affiliated entities. Delaware was the first state to enact a series LLC law in 1996, and their series LLC act is best known. Since then, other states have enacted similar statutes. Florida does not have a series LLC option.
I came across a blog post in theLLC Law Monitor which discusses the Texas series LLC law enacted in 2009. The post gives a good overview of the advantages of series LLC planning as well as several undecided legal issues. The article concludes that, "The law of series LLCs is an infant, still a little unsteady on its feet."
