Previously, real estate investors preferred holding each property as a separate Limited Liability Company (LLC). As a result, each investor held numerous LLCs and paid high costs creating the multiple LLCs. This process made it difficult for investors to manage their properties.

The new trend for real estate investors is creating a Series LLC. In a Series LLC, investors can own multiple properties and businesses in one LLC and compartmentalize their assets into separate cells. Conceptually, the separate cells are like sub-companies, or subsidiaries, of a parent company. The benefits of a Series LLC are simplicity, cost effectiveness, and liability separation. At Pratt Aycock, our attorneys can assist you form a Series LLC and possibly convert an existing LLC to a Series LLC.

Before an investor creates a Series LLC, they should consult our attorneys to determine if the business and properties should be mixed into one LLC. An investor can create many problems within a Series LLC if one asset produces a higher level of liability, if the assets have significantly different debt structures or tax treatments, and much more. The experienced attorneys at Pratt Aycock can provide proper advice regarding the creation of a Series LLC.

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