Texas LLCs and Series LLCs
The Texas Limited Liability Company or LLC is the most popular choice among new Texas businesses. The LLC was designed to be a mix of what owners like about the simplicity of being a sole proprietor, coupled with liability protection similar to a corporation.
In addition to the creation of hundreds of LLCs, Julie Alexander has created over 150 Series LLCs since beginning to use the Series LLC for her real estate investor clients in 2010. The Series LLC allows us to plan more cost effectively for the avoidance of the “domino effect,” where a liability at one property may affect a client’s other real properties.
In 2009 Texas passed laws allowing for the Texas Series Limited Liability Company (Series LLC), which is a great tool for certain investors and developers with Texas based real estate holdings. The Series LLC more cost effectively for the avoids the “domino effect” of liability at one property affecting a client’s other properties. The Texas Series LLC allows for the creation of a main LLC, with the option and ability to create Series within the main LLC. Each Series may hold real property assets, which are then separated from liability from the main LLC and the other Series.
The Series LLC allows us to accomplish the goal of protecting a client’s real property assets in a way we were traditionally only able to accomplish with separate LLCs. As a result, with the Series LLC, a client pays less in state filing fees, while still gaining separated liability protection for his or her personal assets and properties.
Julie Alexander first consults with the client and his or her tax advisor to determine if an LLC is a good fit for the business. She then works to assure that all LLC documents are well drafted and maintained, which is imperative for keeping liability protection.
Our LLC Formation services for Texas LLCs include:
- Consultation to Determine Structure (Management structure, Officers, etc.)
- Name Availability
- Certificate of Formation
- Company Agreement
- Unanimous Written Consent/Minutes for Organizational Meeting
- Tax ID / EIN number from the IRS
- Buy-Sell Agreements
Many clients are surprised to learn that the filing they completed on-line with the Secretary of State or with an online formation service may not be sufficient to protect their business, real property and personal assets. For these clients, Julie Alexander assists in correcting existing documents and drafting additional documents required by Texas law.
There is no substitute for professional legal services for LLC formation in Texas, including personalized consultation and tailoring of the LLC formation documents to the needs of clients. It is often much more expensive to correct problems in LLC filings than it is to draft the LLC documents correctly the first time.
Julie Alexander is not a CPA and does not know the details of her clients’ tax filings. Therefore, she strongly encourage her clients to make all decisions regarding Texas LLC formation in conjunction with a tax professional.
Julie Alexander is happy to provide a proposal for for her services. For more information please contact Julie Alexander at Julie@AustinCondoLaw.com.
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Julie A. Alexander