For real estate investors in Colorado, asset protection can help prevent lawsuits. If you are new to real estate investments, you may have heard of a limited liability company (LLC). While an LLC is a good first step, real estate investors in particular should strongly consider the use of a Series LLC.How a Series LLC WorksA Series LLC has a “parent-child” structure. It starts with the formation of the parent LLC. From there, you can form as many “child”, or series, LLCs beneath it. For real estate investors in Colorado, this is important because of the limited liability protection it provides for each investment property.A Series LLC is easy to file. Unlike filing for separate LLCs for each property, a Series LLC only requires the initial filing of the Articles of Formation with the appropriate governing entity. (In most states, this document must specifically state that additional series are permitted as needed.) As you add a Series LLC to the chain, you would simply amend your master operating agreement instead of repeatedly having to file a new Articles of Formation document.The Benefits of a Series LLCA Series LLC offers many benefits for real estate investors in Colorado.Tax BenefitsAssuming you have filed to be taxed as a sole-proprietor of the Series LLC, any profits generated by your investment can be paid at a member level. This means, you pay taxes through your personal income taxes instead of as a business. (The Internal Revenue Service, or IRS, allows sole-proprietors to file form Schedule C. Because money cannot be taxed twice, this exempts you from having to pay corporate-style taxes. This is known as “pass-through taxation” and can help ensure you maximize gains while reducing taxes.) In the state of Colorado, since corporation taxes are not to your advantage, this is especially useful for real estate investors. Personal Limited LiabilityAs the name implies, an LLC limits your personal liability. To do this, it forms a legal barrier that prevents lawsuits, settlements or bankruptcies against your business from being able to gain access to your personal assets.CompartmentalizationA Series LLC, however, takes limited liability to a completely new level. By placing each property into a separate Series LLC, you isolate that asset. This means that each asset is protected from lawsuits, settlements, and the debts owed by one of your other properties. This helps to reduce the likelihood of a lawsuit because it severely limits the potential amount opposing counsel could win in a settlement against you.Why File a Texas Series LLCNot every state allows for the formation of a Series LLC. However, most will allow a Series LLC from another state to file as a “foreign” entity and permit it to do business within its borders. While Colorado will allow you to form a Series LLC, filing a Texas Series LLC may be a better choice.Our professionals are real estate investors themselves. We understand how important asset protection is to a real estate investor. While filing a Series LLC in Colorado is possible, we ensure you can maintain your anonymity and further protect yourself from lawsuits.As experts in asset protection, we know anonymity is vital to lawsuit prevention. Why? Because a lawyer have to find you first before they can file a claim against you. To do this, we help you form an Anonymous Land Trust that will act as your Texas Series LLC owner. Because of the inherent nature of a land trust, your name is never publicly filed in association with your trust or Series LLC. Because you can then use our Texas address for any legal paperwork, it provides yet another legal layer of protection.Streamlining Your Texas Series LLC ProcessWe have many years of experience with tax regulations, real estate investing, and asset protection. We use this experience to streamline the set up and management of your Texas Series LLC. If you are new to owning a business, filing entity documents, or investing in real estate – our professionals can help ensure you understand the nuances of this exciting new endeavor.If you are a real estate investor in Colorado, contact us today to learn more about how a Texas Series LLC can keep your investments safe.