The formation structure you choose for your Houston business plays an important role in its success and other equally factors like taxation and liability. It’s crucial to take your time, seek information, get professional legal advice, and so on during your business’s formation stage.
The series limited liability company (LLC) model is fairly new but is becoming more and more popular in Texas. What is it and how does it work? If you’re considering registering a series LLC, it’s best to set up a meeting with a business formation lawyer first to understand whether it’s ideal for your business.
A series LLC ownership allows the creation of independent series within one master LLC company. This includes the segregation of assets, membership interests, and even business operations conducted by each sub-series.
Additionally, the independent series can have a different name, different managers or members, separate bank accounts, records, accounting books, and so on.
This also means that each sub-series is protected from the liabilities of the other companies. Such a formation shields each of the companies from being sued and losing assets associated with another independent series.
Another reason series LLC is popular in Texas is because it saves on filing fees. After filing the initial documents allowing you to establish a series LLC, you don’t have to do the same for subsequent sub-entities that you form.
Series LLCs are most popular among real estate investors to protect their different assets, but other businesses can do this as well.
For a successful LLC, ensure that the businesses involved in the independent series have the same laws, tax compliance, debt structures, and so on, such as in real estate. If your company has two or more sources of major profits, it might be time to think about a series LLC too.
Remember, the series LLC is fairly new among policymakers too, and laws may change or become contradicting. Talk to a lawyer first to understand your legal obligations and what you should expect running a series LLC.
When it comes to your business, making the right decisions during its foundation can determine how well you thrive. Get professional advice from a business formation lawyer to ensure that you’re informed, are complying with related laws, and that you’re well represented should anything arise.
Reach out to The Curry Law Firm to schedule a consultation and discuss your needs. Call us at 713-678-0013 or simply fill out the contact form on this page to get started.