Series LLC For Real Estate Investors In West Virginia

Aside from getting to live in “almost heaven,” West Virginia investors really do have something special. And we’re not just talking about the local real estate markets. From an asset protection standpoint, West Virginia investors also have more options. For instance, did you know that you can use an in-state Series LLC as a component of your asset protection plan? You can also use one from a different state if you choose. So yes, West Virginia investors can have it all when it comes to Series LLCs and asset protection. Learn more now.

Is There a West Virginia Series LLC?

West Virginia joined the club of states permitting Series LLCs fairly early on. They’ve offered an in-state option that’s a decent investment vehicle. At the very least, it’s better for investors with multiple properties or those who intend to acquire more than one property. The West Virginia Series LLC is one way you can compartmentalize assets in-state. But it’s far from your only option.

You Said West Virginia Investors Can Shop in Other States. How Does That Work?

That’s correct, you can. And it’s pretty easy. Basically, all you do is a little bit of research. You can use some of our favorite states as a starting point

Texas. Zero state income tax, strong asset protection laws, ultra-cheap formation fees.
Delaware. The state that originated the Series LLC craze is still popular for it’s famously pro-business legal system and simply being the pioneer in this area of asset protection.
Arizona. Arizona’s benefits are similar to Texas’, though at the time of this writing, slightly more expensive to form.
Wyoming. This new kid on the Series LLC block is proving effective and cheap, with low fees attracting investors from around the country.

The reality is that you can form your Series LLC anywhere, and it doesn’t have to have anything to do with West Virginia. If you love your state’s offering, go ahead and take it. But don’t forget to also research these other options thoroughly if you’re really trying to establish long-term lawsuit prevention strategies and effective asset protection.

What Else Should West Virginia Investors Know About Series LLCs?

Aside from your freedom of choice, West Virginia real estate investors should know that the Series LLC is great regardless of where you form it. It allows you to scale up easily, add new “child” Series from the comfort of home, and simplify your real estate business’s books and taxes. You can also learn more about how to strengthen your Series LLC with other legal protections such as Anonymous Land Trusts. The strength of this entity make shock you, but when used correctly, you can also count on it to cover your assets and keep you out of court

Series LLC For Real Estate Investors In Washington

Whether you’re in the big city of Seattle, overlooking the Puget sound, enjoying the highest quality-of-life in America on Bainbridge Island, walking past the wildflowers of Burien, or somewhere else amidst the greenery, there’s no shortage of beautiful views and beautiful homes in Washington State. So the Washington investor is often a sophisticated, intelligent one--the kind of investor who not only knows they need asset protection, but is pretty sure they need a Series LLC. It’s safe to say you’re highly intelligent folks, and we’ll address you as such. So Washington investors, please enjoy your personal guide to using the Series LLC for real estate investing.

Does Washington State Have a Series LLC?

Washington is not yet among the states to adopt Series LLC legislation. That means there’s no such thing as a Washington Series LLC. The state does, of course, have Traditional LLCs available if you’re determined to get a local entity. But if you want to get a Series LLC, you’ll have to play by the laws of a different state. But don’t worry, we’ll show you how.

How Should Washingtonian Investors Defend Real Estate Assets?

No matter where you live, asset protection strategy stays the same. You need to compartmentalize your assets and maintain your anonymity, and you can use a variety of legal tools as a means to this end. The ideal asset protection plan accomplishes both of these goals.

The Series LLC is a critical component of such a plan because it allows the investor to compartmentalize and grow without extra expense. The good news, Washington investor, is that you get to take your pick of any of these great states for forming LLCs:

Texas. Come on down to Texas for low formation fees, no state income tax, and rock solid asset protection laws.
Delaware. If you’re committed to staying in the North, Delaware did originate the Series LLC. It’s pricier than TX to maintain, but you do have advantages like the special Chancery courts, which are presided over by business law expert judges. It’s a pro-business state, for sure.
Wyoming. As of Summer 2019, Wyoming’s one of the newest Series LLCs that just happens to be among the cheapest. Its laws are modeled after other states with strong asset protection legislation.

Really, you can pick any state. But we recommend Texas above the rest, because that’s the place to go if you want to send this message: don’t mess with my assets. The Texas Series LLC is a great solution for the Washington investor with multiple properties, or even aspirations of owning multiple valuable assets. Other businesses may also be placed within your Series LLC structure to protect you from liability issues.

How Do Washington Investors Pick a Series LLC?

You can establish your Series LLC easily. Get in touch with an attorney who has experience forming these entities, let them know exactly what you want, and a competent attorney can lead the way from there. Welcome to the club of real estate investors who can sleep easier at night, never worrying about bogus lawsuits threatening their assets.

Series LLC For Real Estate Investors In Maryland

Maryland is a lovely and lush state full of natural beauty and honest, hard-working people. Our Mariyland investor friends often write in with their questions about their best real estate asset protection options. Perhaps they already know that most REIs can benefits from the Series LLC, or they’re trying to figure out whether Maryland offers a Series LLC.

Is There a Maryland Series LLC Option for Investors?

Unfortunately, Maryland investors cannot yet use a Maryland Series LLC for the simple reason that it doesn’t exist. Just under 20 states currently permit the Series LLC, and Maryland isn’t on the list. But you’ve got no reason to fret: you can still have your Series LLC.

Which Series LLC is Best for Maryland Real Estate Investors?

Fortunately, the Maryland investor isn’t bound to playing by Maryland’s rules. One of the beautiful things about the American real estate industry is that you can choose which state’s “rules” you don’t mind playing by. We’ve gathered up a few of our top choices for Series LLCs for your convenience. Here are some of the states whose rulebooks we like:

Texas. Easy, cheap formation. No state-level income taxes on your business. Some save thousands by picking states with this feature.
Arizona. Their Series LLC has operational perks that help some investors.
Delaware. They pioneered the Series LLC.
Wyoming. A recent addition to states offering Series LLCs, and dirt-cheap in mid-2019.

Any of these states will deliver a fine Series LLC, and then it’s your responsibility to use it correctly.

How Do I Know if I Need a Series LLC?

It’s pretty simple: if you have real estate assets in your own name, you should consider transferring them immediately into your Series LLC structure. This removes the property from your name, and if you have an anonymous trust, the trust will hold title while the Series LLC defends the property by sticking it in a child series, by itself, protected with liability benefits and literally inside of its own company. All this company does is hold assets--and it should never interface with members of the public. If you have assets you value, you want them in a company rather than your own name. That’s one simple way to decide if you need a Series LLC.

The quickest way to figure out if you need a Series LLC over a Traditional LLC is easy. Just count up your properties. If you have more than one or plan to have more than one in the future, the Series LLC is the more economical option. File it once, and add child Series indefinitely as you acquire assets. You can easily create new Series at home or work within minutes, print it, fax it to your lawyer, and ask to transfer your new property into it. This way you can grow and defend your assets simultaneously.

How to Control Property Without Owning It: 3 Simple Methods

We often emphasize that fabulously wealthy folks don’t own assets, they control them. It’s something we point out often at Royal Legal Solutions, because you don’t have to be rich (yet) to borrow a few things out of the Fabulously Wealthy Playbook.

Let’s do a quick crash course in the top legal ways to control property without owning it for asset protection purposes.

Method #1: Use Land Trusts

The handy anonymous land trust is one of the easiest methods of controlling property without owning. The trust simply holds title to the property for you, removing your name from any public record. You get anonymity, become tougher to attack legally, and are legally separate from the asset but reap its rewards as the beneficiary of your land trust.

Method #2: Use Liability-Limiting Entities Like LLCs and Series LLCs

Another great way to control an asset is with an entity. We like those that limit liability, because they help protect your assets in the event of a lawsuit or threat.

Examples of the kinds of companies we’re talking about include:

The Traditional LLC (short for Limited Liability Company)
The Series LLC
The Delaware Statutory Trust for California investors

Each of these entities offers liability limitations inherently. You’re separated from your assets and any claims around your real estate can’t affect your personally. So say a tenant goes careening through your deck and hurts himself. He may try to sue for your property.

Depending how you set up these entities, you can either stop the suit before it starts or make it a complete waste of the tenant’s (and more importantly, his attorney’s) time. Entities can be structured to separate assets from each other, limiting how much anyone can receive by court judgment. If you set up your companies with an attorney’s help, you can own them completely anonymously, making a lawsuit nearly impossible to file. Either way, companies are much tougher to sue than people and one of the smartest ways to control property.

Method #3: Use a Shell Corporation for Property Ownership

Why should you risk exposing your personal self or assets to the world? A shell corporation can do this for you and streamline your real estate investments, too. Most investors will find the Traditional LLC works just fine for a shell corp. If you already have one and it has never held your assets, you may consider using it.

Otherwise, you can easily form your LLC; property ownership and ALL of your other real estate investing operations can be performed from there: collecting rent, paying property management, etc.

Next, you’ll need an asset-holding company for your properties. We recommend the Series LLC if you’ve got more than one property or ever plan to, because the Series LLC is a cost-effective, scalable entity option.

All this company ever does is hang onto your assets for you. NEVER do business from your asset-holding company: that’s your shell company’s job. With this kind of structure, your two companies exist to handle assets and operations 100% separately and independently of one another.

For a deeper look at all this stuff, check out our article, Control Without Ownership: The Smart Way Real Estate Investors Own Property.

Series LLC for Real Estate Investors in Connecticut

There’s now denying that citizens of Connecticut are innovators, with nearly 400 years of history dating all the way back to Colonial times. While most Americans are aware the state is deeply interwoven with early American history, the actual achievements of the Constitution State are not always recognized. After all, Connecticut is both one of our original 13 colonies and home to both the world’s first telephone book and the world’s first nuclear submarine. So we know not to underestimate the sheer brainpower and drive of our Connecticut REIs.

If you’ve wondered how you can get a Series LLC, we’ve got answers. Here’s the real skinny on the Series LLC for Connecticut real estate investors.

Is There a Connecticut Series LLC?

Connecticut has yet to join the club and adopt the Series LLC. They've held out on this issue while 17 other states and Puerto Rico adopted their own. We're not surprised to see the state that Colt Firearms calls home resisting, but you can still have your entity.

Fortunately, neither your hands or finances are bound by your state’s borders. You can form your Series LLC in any state that permits one.

What’s the Connecticut Investor Who Wants the Series LLC to do?

Recall the state motto of Connecticut: "He who is transplanted still sustains." Well, in the case of real estate investing, the individual who willingly transplants their real estate company to another state. Just because you live or own property in Connecticut does not mean that you are stuck there legally. You're a United States Citizen, so enjoy that freedom and wander into a better jurisdiction for real estate investors business owners.

You, like any investor, can actually select the Series LLC of your choosing based on the benefits that are available in your chosen state of formation. Studying some of the Series LLC options can be helpful in making this decision.

What Are The Connecticut Investor’s Series LLC Choices?

So of our current Series LLC choices, which ones are the best for you?

At the time of this writing, we consider these states to some of those we advise investors to consider for their Series LLC formation include:

Texas. State-level income taxes are common, but Texas doesn’t. From an asset protection view, it’s a strong choice. Enjoy the savings and the other pro-business legislation the Lone Star State has to offer.
Wyoming. Though a newer kid on the Series LLC block, Wyoming boasts strong asset protection laws. You’ve got added anonymity too, as there is no requirement to record names of members or managers on the public record.
Nevada. The state has fewer legal requirements for LLC owners generally, and like Texas also doesn’t charge income or franchise taxes. The state offers investors flexibility in operations and strong laws modeled after our final state, Delaware’s Chancery Courts.
Delaware. The grandaddy of all Series LLCs. Delaware was the first U.S. state to codify the Series LLC into the ordinary LLC legislation we’d find in every state. Not only did Delaware pioneer the Series LLC, but they also have business-specific courts (where judges are all business law experts) called Chancery Courts. They have a reputation for being friendly, but not biased towards, business owners.

Research these states, and compare their benefits and drawbacks. Of course, a legal professional familiar with asset protection will be best suited to help you, but coming in with ideas can save time and money. We hope Connecticut investors now have a better grasp of their true choices for Series LLCs.

Series LLC for Real Estate Investors in Wyoming

We love hearing from our fellow investor friends in Wyoming for a few reasons. Not only do citizens of the Cowboy State tend to be good, honest salt-of-the-earth folk, but also sharp real estate investors. So it’s no small wonder we get tons of questions about the Series LLC for Wyoming investors. It is a mighty entity. Wyomingites, here’s your quick and dirty guide.

Does Wyoming Have a Series LLC?

Wyoming is actually one of the newest adoptees of the Series LLC. They became the 18th state to legislate the entity into their existing LLC law in 2018. Big Wyoming has long been known for the powerful protections the state offers Traditional LLCs, and they extend to the Series.

That said, you need not assume that living in Wyoming means a Wyoming Series LLC is your only or best option. You can form your Series LLC in any state that permits one.

How Effective is Wyoming’s Series LLC?

We will admit that here at Royal Legal Solutions we have said we believe some states have better Series LLCs. That said, we haven’t always given Wyoming a completely fair shake. People usually ask for our top three picks, and Wyoming being such a new kid on the block has meant this is our first occasion to write in depth about the state’s entity. Generally, when folks ask us which three states we like, these are our go-to responses and reasons:

Texas. Low-cost to form with no state tax.
Delaware. This state invented the first Series LLC, and well, everyone loves the original. Local protections are strong and investors have stronger chances of being treated by their unique and notoriously pro-business Chancery Courts. Such courts are composed of judges who are experts in business law, presiding solely over business law affairs. Rulings tend to be favorable to investors.
Nevada. It’s also cheap to form in Nevada.

But Wyoming actually offers a very strong Series LLC. State-level asset protection laws are rather investor-generous, meaning it can be considered a top contender for some investors.

What’s the Best Series LLC for the Wyoming Investor?

We believe your Series LLC should be formed wherever serves you best personally. Wyoming investors cannot be generalized. The drawbacks and benefits of a Wyoming Series LLC vs. the alternatives we discussed above will actually vary heavily from individual to individual. What’s good for the REI goose seeking judicial protections isn’t necessarily great for the REI gander who’s content to rely on Wyoming’s strong asset protection laws.

The two best things you can do are study up on these structures and seek the advice of a qualified asset protection professional. We try to help out with regular educational materials on this badass structure for real estate investors--because we’re big believers that all REIs should at least be aware of what this entity’s capabilities are. So please feel free to get your fill of our educational resources. For example, if you haven’t yet, you should catch our short piece breaking down the biggest benefits the Series LLC gives REIs.

Series LLC for Real Estate Investors in Virginia

Where you live certainly can influence your Series LLC options, and which states you should consider forming your company in. If you plan to use a Series LLC holding company, you may have in-state options--but whether these are worthwhile, let alone your best, is a decision that must be made with the help of an attorney.

Yet time and again we get questions about what asset protection looks like in a given state. The truth in Virginia is the same as everywhere else. In reality, the Series LLC for Virginia investors offers many benefits and can take many forms.

Is the Series LLC Offered in Virginia?

The Series LLC isn’t ubiquitous by any stretch. Not all U.S. states have legislation defining this entity, therefore many investors will necessarily form beyond their state’s borders. This is a common, valid, and safe strategy.

For Virginia investors, the first question is typically whether there is a Virginia Series LLC. In short: no. But you need not be confined simply because your state’s business legislature has yet to get with the program.

Which Series LLC Structures Are Great for Virginia Real Estate Investors?

Let’s just begin with the assumption that the Series LLC will be helpful to you, either now or in the future. It is for essentially any investor who has multiple assets or plans to scale up over time. You still have some choices to make.

You can choose which state’s “rules” you’d like to play by. We have some pretty well-known opinions on the best states for forming LLCs, but will elaborate a bit here wtih the Virginia real estate investor in mind.

Texas Series LLCs are highly useful entities for investors in most states, including Virginia. Some basic benefits include no state income tax, a single low, one-time filing fee, and the availability of legal support services for this structure.
There is no particular benefit to forming an entity within Virginia unless you only intend to hold a single asset within it or use it as a shell company. In these cases, speak to a lawyer about your plans to ensure your goals will be met. A chat with a CPA may also be prudent.
Take a look at the options in other states to compare. California, for instance, will be far more expensive than say Texas, Nevada, or Wyoming. But understand that Series LLCs are not universal. Delaware is a state that has a strong, legally protected option as well. Formation anywhere is possible but you may have to pay registered agent fees. Given how affordable these are, most investors don’t mind for the peace of mind of not having to worry about lawsuits. An in-state registered agent can be accomplished for a low monthly or annual fee.

Weigh your options, and above all, get the opinions of the experts you trust most.

Virginia Investors: Get the Series LLC that is Right for You

Your Series LLC should above all be tailored to you and formed with the assistance of a qualified real estate asset protection attorney. If asset protection is even a partial motive in setting up your company, it’s best to work with an expert. In the meantime, you can always educate yourself. We like educated clients, and find investors who are more informed about the structure advocate better for themselves as well. Feel free to use our free resources to bone up on the benefits of the Series LLC.

Series LLC For Real Estate Investors In Texas

The Lone Star State is a great place to live, love, and work. In fact, we like this state so much that our firm is based deep in the heart of Texas in Austin. If you’ve lived in Texas long enough, someone has inevitably told you about how everything is bigger here. It just so happens that the same is true of Series LLC benefits.

Texas Series LLCs Are Among the Strongest

The Series LLC isn’t universally structured. The entity is defined and legally controlled at the state level. In fact, not all states have Series LLCs. But Texans are fortunate to have a local option for the Series LLC. If you live in Texas, you won’t need to pay any additional fees that non-Texan investors would expect.

How Does the Texas Series LLC Benefit Real Estate Investors?

We at Royal Legal think this entity kicks ass for a few reasons. Here are just a few of our favorites:

Texas Series LLCs are protected by strong state laws. You can’t be held liable for the actions of your LLC and vice versa.
Forms the core of your asset protection plan by limiting liability and compartmentalizing your assets into Series.
Stops lawsuits dead in their tracks. You don’t own assets. The entity you control, your Series LLC in this case, does.
Streamlines business dramatically. Organizing and bookkeeping is simple, too. You can normally keep doing whatever you were before.
No special requirements for meetings, minutes, or other red tape.
No state income taxes--at all! You’ll have to let the Comptroller know once a year that you have “no taxes due.” Our staff can even help you out with this task.

But the benefits hardly stop there. Learn more about how the Series LLC protects your assets now.

Get Your Texas Series LLC Sooner Rather Than Later

If all of this sounds fantastic to you, we advise proactivity. So even if you’re brand new to investing, it’s not too early to start constructing your asset protection plan. We’ve said it before and we’ll say it again: the law truly favors the proactive. If you wait for a lawsuit threat to strike, it’ll be too late to get your assets into the safety of the Series LLC structure. If you’re ready to learn more about how this entity can help you in particular, consult with one of our experts.

Series LLC For Real Estate Investors In Massachusetts

For the uninitiated, the Series LLC boasts many benefits, ranging in uses from streamlining your business to simplifying taxes. But if you’re here, you’ve likely heard about the structure’s unique asset protection benefits. Believe the hype. This structure is a powerful entity that is suitable for the vast majority of investors we speak with. But there’s always confusion around location, which we hope to clear up a bit today.

Real estate investors in Massachusetts always want to know whether their state offers the Series LLC first. Well, your wish is our command. We’ll answer that question first, and go into greater depth about the best ways for you to form your Series LLC as a Massachusetts real estate investor.

Can I Get a Massachusetts Series LLC?

Massachusetts currently has no Series LLC legislation. An understanding of how a state adopts a Series LLC may be helpful. Like all LLCs, the Series LLC is controlled at the state level. All fifty states, including the Commonwealth of Massachusetts, offer a Traditional LLC. So typically, when a state adds a Series option, all they need to do is incorporate the Series LLC and the rules it must follow into their existing LLC legislation.

Massachusetts hasn’t, but that’s okay. One of the beautiful things about the Series LLC is that if your state doesn’t offer it, or you don’t like your state’s rules, you can play by a different state’s rules instead. Let’s dive into that a little more.

The Texas Series LLC: The Smart Solution For the Massachusetts Investor

No matter where you live, you always have the option to form a Series LLC elsewhere. A Series LLC is as strong as the state it’s formed in, precisely because the state laws discussed above determine how well the entity protects your assets. Fortunately, we’ve gone ahead and done the research on all fifty states, and of course, their pros and cons.

This research and our years of experience forming and implementing the Series LLC in a real estate context have shown us that the Texas Series LLC is generally the best option for Massachusetts investors. Considering you have your pick from the entire country, why not go with the best?

The Texas Series LLC is dirt-cheap, with one filing fee of $300 and no state income tax. Texas has some of the mightiest asset protection laws in America and strong charging order protection. All that’s on top of the fact that it’s the last asset-holding entity you’ll need to buy, since you can add assets and grow indefinitely. It’s convenient, too. Our firm offers end-to-end service where we assist with everything you need, from formation and filing through property transfers.

Royal Legal Solutions is Here For Your Series LLC Needs

The Series LLC experts at Royal Legal Solutions are among the best in the asset protection field. Our attorneys, advisors, and other team members work hard to bring you the latest and most accurate information. We also know how to take your whole situation into account and reject the ideas of cookie-cutter entities or asset protection plans. Personal details and your level of exposure will dictate whether you may need additional tools or special attention to certain legal details to become truly judgment-proof. If you’re ready to put fear of lawsuits in the rearview and learn what the Series LLC can do for you, schedule your consultation now.

Series LLC For Real Estate Investors In Nevada

The Series LLC is a flexible structure that is fortunately accessible to real estate investors all over the nation. If you aren’t yet familiar with the Series LLC’s many perks , they’re well worth getting to know. While the option is not yet available in every state, investors may choose to form Series LLCs out-of-state. Of course, it’s natural to wonder whether your state offers setting up an in-state Series LLC as a Nevada investor. We will go over in-state and out-of-state options, while answering some frequently asked questions and providing tips for how you can get the help you need from your paid professionals.

Does Nevada Offer a Series LLC?

Nevada is indeed among the states that offer a Series LLC. The state began offering the Series LLC with changes to its LLC legislation in 2005. Nevada is a great state for forming a Traditional LLC as well, as it has strong protections for Traditional LLCs that we have written about in greater detail before.

Series LLC Alternatives for Nevada Investors: Texas and Delaware

While Nevada has its own option for Series LLCs, it is important for investors to recognize that the Series LLC can be stronger or weaker based on the jurisdiction it is formed in. For this reason, it is smart for investors from Nevada or anywhere else to fully examine out-of-state options as well.

While it is true that Nevada’s LLC options are certainly better than average for the United States, it can be enlightening to compare it to another pro-business state’s offering. We have found in our professional experience that the Texas Series LLC is a great option for investors nationwide. This entity is freely available to any investor, including Nevada real estate investors, to use.

The Texas Series LLC may offer these and other advantages:

Cost savings. Texas requires only a single filing fee of $300.
Fewer fees. Our firm arranges Texas Series LLCs so you won’t even pay foreign registration fees by using trusts.
No state-level income tax.

Delaware can also make a great choice. If you study the Series LLC, you will quickly learn it has a strong history in the state. Delaware also makes use of Chancery Courts, which are overseen by judges who specialize in business law. The judicial benefits of Delaware Series LLCs make it a popular, and smart choice.

When deciding where to form your entity, always ask about taxes and fees you may owe. A wise investor can easily make a pro and con list about their desired state of formation to aid in decision making. As a bonus, this is also a great way to come up with questions to ask your attorney.

Nevada Investors Can Count on Royal Legal Solutions For Series LLCs

The asset protection experts at Royal Legal Solutions are always happy to guide you through the Series LLC formation process. If you’re ready to start experiencing this entity’s perks, schedule your personal consultation now.

Series LLC For Real Estate Investors in Ohio

Whether you’re set on forming a Series LLC or interested in the Series LLC’s benefits for real estate investors, this article will give you the very basics on what you need to know about setting up a Series LLC as an Ohio investor. We will go over in-state and out-of-state options, while answering some frequently asked questions and providing tips for how you can get the help you need from your paid professionals.

Is There an Ohio Series LLC?

Each State has its definitions about which entities may be formed within its borders. Ohio is not yet among these forward-looking States. Whether this will be the best entity for you will depend on a variety of circumstances, both personal and business. There are good reasons for the Ohio investor to form a Series LLC out-of-state.

Sometimes these reasons are obvious, such as cost. Ohio investors may want to form out-of-state is to take advantage of the stronger asset protection laws in other states or to make use of certain types of trusts not allowed by Ohio law. To help you understand your option, below we will compare the Ohio Traditional LLC with its counterparts from other states with forgiving LLC laws for investors.

Series LLC Options for Ohio Investors: Texas and Delaware

Although Ohio is a great state for forming a Traditional LLC, we recommend the Series LLC for asset protection. There’s a danger to “pooling” multiple assets into one Ohio LLC. If that LLC is ever sued, everything in it is vulnerable to seizure.

The Texas Series LLC is an ideal solution for many investors. You don’t have to own property, nor ever even travel to Texas to use a Texas Series LLC. While we all know that the Series LLC is inherently beneficial, here are some perks that are special to Texas’s Series LLC.

Cost savings. You pay the state once to file, but have the luxury of having as many Series as you like. Texas’s $300 filing fee is on the very lowest end of the price spread for the country at the time of this writing.
Tax advantages. Texas has no income tax, so your only duty for Tax Season will be filing “no taxes due” with the State Comptroller. At Royal Legal Solutions, we offer a subscription service where we take care of this part for you.
Use of Anonymous trusts in conjunction with your Series LLC is possible for greater asset protection.

Delaware offers similar benefits, but is more expensive.

Royal Legal Solutions Can Assist Ohio Investors With Series LLCs and More

The asset protection experts at Royal Legal Solutions can help you establish your Series LLC, whether you’re in Ohio for now or forever. To truly know which option will be best for you, one of our experts will need to review your situation with you. You really are unique, as is your real estate business. Which structures will be best is something that you can hash out quickly with a seasoned pro, but we need to know your circumstances. Let our team of legal professionals help you. Schedule your personalized asset protection consultation now.

Series LLC For Investors in Florida

Real estate investors get excited when learning about the benefits of a Series LLC for real estate investors. Florida investors are no different, and often first want to know whether there is a Florida Series LLC. Continue reading to learn more information about the best way to establish a Series LLC as an investor in Florida, which entity structures may be most useful to the Florida-based real estate investor, and more details about protecting your rental properties with a Series LLC.

Is There Such a Thing as a Florida Series LLC?

Whether a State offers a Series LLC will depend on that State’s laws for establishing Limited Liability Companies. At the time of this writing, Florida does not currently offer a Series LLC. But this does not mean you are forced to pick from Florida’s entity offerings. Investors can actually pick which State’s “rules” they’d like to play by when the select which state to form their entity in. Naturally, this leaves many of you wondering which State is best for the Florida investor.

Out-of-State Series LLCs Offer Solutions for Florida Investors

If you know the Series LLC is likely to be the best entity for you, take heart in the fact that you can form one outside of Florida. Why limit yourself to in-state details when forming elsewhere could save you thousands?

Cost savings. Your fees are limited to a single filing fee with a low rate of $300, which is among the cheapest in the country.
Tax savings. Everything is bigger in Texas, except our state income tax. That’s because the State of Texas does not have a state income tax. Moreover, Texas does not tax your Child Series, or even your business annually as other states may with a Traditional LLC. Come business tax time, your main job is to file “no taxes due” with the State’s Comptroller, which is about as easy as taxes get.
Operational perks. If you’re using a traditional bookkeeping system, you can carry on business essentially as usual. We’ve had clients run their records with a simple Excel sheet and attention to detail.

While the Texas Series LLC is our first choice for Florida investors, you may also take the time to research the Delaware model. It is similar in protections, albeit a bit more expensive for many investors as the state does have an income tax.

Royal Legal Solutions Can Help Establish Your Series LLC and Other Asset Protection Structures

The real estate lawyers at Royal Legal Solutions can help you establish your Series LLC, whether you’re in the Sunshine State or elsewhere. We help real estate investors from all over the country set up the best entities for them and their business goals. Schedule your personalized asset protection consultation today to find out more about the best asset protection tools for you.

Series LLC For Investors in New York

If you are a real estate investor in New York, you may already be familiar with some of the benefits of Series LLCs for real estate investors. Read on to learn more about whether there is an in-state Series LLC option for New Yorkers, which Series LLC options will likely be best for the New York investor, and how Royal Legal Solutions can help you set up this critical component of your asset protection strategy.

Is There a New York Series LLC Option?

State law will provide whether a certain state has a Series LLC option. While all states have some form of Traditional LLC that you can form within its borders, the State of New York does not have a Series LLC offering. However, this does not mean that New York investors are limited only to the New York LLC. Investors in New York may still take advantage of a Series LLC. All they must do is select one formed in a different state.

Out-of-State Series LLCs for the New York Investor

Fortunately for the New York investor, there is nothing stopping you from forming a Series LLC in a state that does permit one. This entity offers separation of assets, flexibility with tax treatment, creditor protection, and more. But not all Series LLCs are created equally. You want a Series LLC that is cost-effective with strong legislation to back it up.

We have written in the past about which are the best states for forming a Limited Liability Company, and the information in that article holds true for the Series LLC as well. Of the states that do offer Series LLCs, we tend to recommend the Texas Series LLC for investors all over the country. You need not own property, nor ever even have been to Texas to take advantage of this entity. Some benefits specific to the Texas include:

A low, one-time filing fee. Regardless of how many Series entities you have, your Texas Series LLC will only cost $300 to file.
No state income tax. Series LLCs formed in other states may be subject to franchise and other in-state taxes. This is not the case with Texas. Your only obligation is to file “no taxes due with the State’s Comptroller once annually for your business--you don’t actually pay anything in taxes.
Operational perks. The Texas Series LLC works effectively with the traditional bookkeeping methods you are likely already using.

For those who want a second Series LLC option, the Delaware Series LLC offers similar benefits and some others. Although the State does have an income tax, this tax is fairly low at only $300 per year and the Delaware Series LLC also confers some judicial benefits.

How Royal Legal Solutions Can Help Establish Your Series LLC and Other Asset Protection Structures

The real estate lawyers at Royal Legal Solutions can help you establish your Series LLC, no matter where you reside. Schedule your personalized asset protection consultation today so you don’t have to worry about losing your assets in a lawsuit in the future.

Series LLC For Investors in Delaware

Investors in the state of Delaware are fortunate to live in one of the best states for forming a Series LLC. This famously pro-business state is a wonderful place to form a Traditional LLC or Series LLC. For real estate investors in Delaware, the Delaware Series LLC provides more protection while also boasting some benefits that Series LLCs formed in other jurisdictions do not.

About the Delaware Series LLC

Delaware was the very first state to enact Series LLC legislation back in 1996. Since Delaware pioneered the Series LLC, other states have looked to Delaware’s legislation when creating their own Series LLC options. The entity has stood the test of time, and today the Delaware Series LLC remains one of the strongest asset protection tools available to investors nationwide.

Advantages of the Delaware Series LLC

The Delaware Series LLC confers the many benefits that characterize Series LLCs generally. All Series LLCs offer a unique way to limit liability, protect the equity of your assets, separation of assets, flexibility with tax treatment, and a mechanism for concealing your assets from prying eyes. You can learn more details from our previous piece on the benefits of Series LLCs for real estate investors.

There are, however, certain benefits that are specific to the Delaware Series LLC. Some of these benefits include:

Low-cost single filing fee. Filing a Series LLC in Delaware costs only $300 at the time of this writing. This fee does not change based on the number of Series within the entity.
Lower tax costs. The Delaware Series LLC must pay a franchise tax annually. However, at only $300, this is a relatively inexpensive in-state tax. While states like Texas may have no in-state tax at all, states like California would require $800 per Series. The Delaware Series LLC will pay the same $300 regardless of number of Series, just like its filing fee.
Judicial benefits. Delaware uses a Chancery Court. The Chancery Court’s judges are specifically experts in business law. The Court has a reputation for providing fair rulings in keeping with the state’s pro-business reputation.
Clear legislation. State law in Delaware specifies the Delaware LLC’s asset protection benefits--including the insulation of assets and liabilities within and between Series. Similarly, Delaware law has clarified that Series may sue or be sued, enter into contracts, and hold title to real estate assets without exposing the entire structure.

How Royal Legal Solutions Can Help With Your Delaware Series LLC

The asset protection professionals at Royal Legal Solutions can help you establish your Delaware Series LLC. We can also assist with property transfers into the structure, If you happen to be reading this from another state, you should know that you may be able to take advantage of the Delaware Series LLC--and we can help you, too. Protect the real estate investments that you have worked hard for. Schedule your personalized consultation today.

Series LLC: The FAQs

Since the Series LLC is a lesser-known entity compared to its Traditional LLC counterpart, it is only natural that real estate investors have questions about the structure. So you can better understand the Series LLC, we have collected some of the FAQs here.

Is There a Cost Advantage to Using the Series LLC?

Absolutely, particularly if you compare the Series LLC with an equivalent amount of Traditional LLCs. Optimal asset protection is achieved by maintaining a single asset per LLC. For owners of multiple properties, the Series LLC is a no-brainer. The Series LLC requires only a single filing fee, and you receive a single EIN to make matters easier come Tax Season. Traditional LLCs, on the other hand, require a fee for each LLC created. When you can simply create a Series for free with a Series LLC, it makes no sense to fumble around with multiple LLCs and all of the record-keeping required to maintain them.

Will I Need to Do Complicated Banking or Change My Bookkeeping?

Fortunately, the answer to both of these questions is “no.” But allow us to elaborate on why. Contrary to some of the misinformation out there about the Series LLC, there are ways to bank effectively with a Series LLC that will only require a single bank account and card. Similarly, the Series LLC is an entity that easily lends itself to traditional bookkeeping. If you are already using traditional bookkeeping methods, fantastic! You won’t have to change anything. We have seen clients effectively keep records for their Series LLC by using an Excel sheet with multiple tabs--one for each Series.

Is the Series LLC The Only Asset Protection Tool I Need?

The answer to this question depends on the level of protection you want. Some investors are comfortable using the Series LLC as an asset-holding company alone, then doing any business that requires contact with the outside world personally. Examples of business that involves the public include collecting rental payments, hiring contractors, etc.

Investors seeking a higher level of protection may opt to use a shell company. A shell company is typically a Traditional LLC. This company would be responsible for any operations, but would not actually own anything. In fact, if someone does decide to sue you, this is the company we want them to sue. You can think of it as the “fall guy.” If a lawyer researches your shell company, he or she will realize suing you is a waste of time because it does not own any assets to seize upon judgment.

For an even greater level of protection, you have the option of incorporating Anonymous Land Trusts. Learn more about the Land Trust and Series LLC asset protection strategy from this previous article on the subject.

Do I Need to Take Any Special Considerations With Naming My Series LLC?

One of the main benefits of the Series LLC is that it makes maintaining your anonymity much easier. Anonymity is crucial to preventing lawsuits. Anyone looking to sue you will hire a lawyer pretty much immediately. The first thing that attorney will do is look to see who owns the property. By having the name of an entity like a Series LLC recorded as the owner of your property rather than using your own name personally, you become a much less attractive target.

But that benefit can be undermined if you fail to name your Series LLC in such a way that preserves your anonymity. To best preserve your anonymity, we suggest that you avoid using any version of your first and last name, business names already well associated with your name, or any other information that clearly links you to the property. To foil the business end of the lawsuit industry, we want an entity that is difficult to tie to you personally. The only other naming concern to take into consideration is whether the name you want is already in use by another business. We have found that a little bit of internet research and creativity can address this concern, as can having your attorney check for you when you form your entity.

Royal Legal Solutions Can Help With Series LLCs

The Series LLC is our bread and butter, and we have been known to sing its praises here and in other corners of the internet. If you are ready to learn firsthand how the Series LLC can protect your real estate investments, contact Royal Legal Solutions with any questions you may have. If you believe the Series LLC may be the entity for you, feel free to schedule your personalized asset protection consultation today. Our experts will review your personal situation and make recommendations about the best legal tools for defending your real estate investments, allowing you to focus on growing your business.

Series LLC: Benefits of The Structure

Those of you who read our blog regularly know we often wax poetic about Series LLC Benefits.

You may be wondering what has us so fired up. To quench your curiosity, we have collected some of our favorite benefits of the Series LLC from our perspectives as both legal professionals and real estate investors.

Series LLC Benefits Mean You Easily Grow Your Business

Wouldn’t it be nice if you could form as many companies as you liked, while only paying once? The Series LLC makes this possible thanks to its parent-child structure. When you establish a Series LLC, you will get a parent company that can have as many “children” as you have real estate properties.

This aspect of the Series LLC allows you to incorporate as many assets as you like into the structure while also following the one asset per LLC asset protection recommendation. Each series has the same liability protections as its own mini-LLC, ensuring your assets are separate from each other (and from you!) in the event you are ever targeted by one of the more, shall we say, litigious members of our society.

This guy is coming after your assets. Are you ready?

Growing your business with the Series LLC is easy. To create a new child series, all you need is an item called a Series Document, then an Operating Agreement for your new series.

At Royal Legal Solutions, we are happy to create these for you, but we also hope to empower you by allowing you to use the documents we create for you as templates for your own. That way, when you acquire a new asset, you will be able to add a new series to your Series LLC from the comfort of your home or office. We can always assist you with any concerns you have regarding creating these documents or transferring property, but we also want you to know the joy of easily scaling up your real estate business. Most importantly, there is no cost based on the amount of series in your structure. Whether you have 2 investment properties or 2,000, the Series LLC can work for you.

Does My State Allow the Series LLC?

Maybe. The types of Limited Liability Companies offered within a state is a matter set forth by state law. However, you do not need to live in a state with an in-state Series LLC option to create a series LLC. In many cases, an out-of-state Series LLC may prove better than any in-state solution. Ideally, you should form a Series LLC in a state with strong legal protections for the structure. We have found that the Texas Series LLC and Delaware Series LLC have these strong protections and work well for real estate investors all across the country--with the exception of our friends in California, who are often better off with a Delaware Statutory Trust.

Is the Series LLC The Best Choice for A Real Estate Business?

The Series LLC is an extremely flexible entity. We find it works well for a broad range of businesses but is especially useful for real estate investors.

The Series LLC Is The Foundation for Your Asset Protection Plan

The Series LLC has several benefits from an asset protection standpoint:

Each series has the liability protections of a traditional LLC. The series LLC offers the protection of an infinite about of traditional LLCs, but at a fraction of the cost. You will only pay a one-time filing fee, and the taxes required by the state you form in (which you have some control over).
The structure separates assets. Not only does each series hold its own asset, thus conferring the liability benefits discussed above, but each is legally separate from the other. Creating additional series is simple, making the one asset per LLC strategy easy for the real estate investor. The structure also separates assets from you personally.
In the event of a judgment against one series, your other assets are safe. If the worst-case scenario of a judgment against one of your series’ occurs, you don’t have to worry about the other assets in your series LLC structure. They are protected by the fact that they are legally separate entities.

There are other benefits to the structure as well, but those are the very basics in terms of how this entity easily defends your assets from lawsuits.

Let Royal Legal Solutions Help You Establish Your Series LLC

If you still have any questions about what the benefits the Series LLC can offer you, reach out and contact Royal Legal Solutions. We are happy to take a look at your personal investing situation and help you determine if the entity meets your real estate investing goals. Start with our investor quiz and we'll make sure you are using the best asset protection strategies for your current situation and ambitions. Protect your investments by scheduling your personalized asset protection consultation today.

Series LLC for Real Estate Investors in Colorado

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 Works

A 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 LLC

A Series LLC offers many benefits for real estate investors in Colorado.

Tax Benefits

Assuming 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 Liability

As 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.

Compartmentalization

A 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 LLC

Not 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 Process

We 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.

Series LLC for Real Estate Investors in California

For most real estate investors, experts recommend you consider investing through a series limited liability company (LLC). However, in the state of California, you should consider using a Delaware Statutory Trust (DST) instead. Why? Let’s take a look.

The Series DST

DSTs are not new. A DST is considered to be a statutory entity. As such, it is created through filing a Certificate of Trust with the Delaware Division of Corporations in addition to paying any regulatory fees required by the law. However, Delaware does not require the actual trust agreement to be filed. This means the trust’s owners, duties and responsibilities remain confidential and do not appear on any official state documents.

The Benefits of a DST

For California real estate investors in particular, the DST is highly beneficial.

Avoid Unnecessary State Penalty Taxes:

California has been notoriously uncooperative with attempts to bring outside LLCs and Series LLC into the state. In fact, while most state permit outside Series LLCs, California will charge you $800 for each series, every year. Depending on the amount of properties you invest in, or the profits or losses you incur, this sum can add up quickly.

Disregarded Entity:

The Internal Revenue Service (IRS) recognizes certain businesses as “disregarded entities”. To qualify, your business must abide by three rules. First, the DST must have only one owner. This is because the IRS only recognizes “sole-proprietorships” as a disregarded entity. Second, the business itself must be separate from the individual. This if for liability purposes. (We’ll talk about how this applies to a DST below.) Third, the business is taxed through your personal taxes (Schedule C). The DST abides by all three rules and, therefore, is considered to be a disregarded entity by the IRS.

Unlimited Compartmentalization:

For many investors, the Series LLC offers a seemingly unique opportunity to protect investments. However, a DST can offer this same protection. A series DST allows you to establish one, “parent” trust. Beneath it, you can create an unlimited number of “child” trusts as well. Most experts will recommend that you put each investment property into a separate “child” trust to ensure all liabilities are self-contained.

Anonymity Assured:

As stated above, with a DST, your identity is not published when the trust is filed with the Delaware Division of Corporations. (To do this with a Series LLC, you first need to establish an Anonymous Land Trust.)

Asset Protection with DST

You may wonder how a DST helps to protect your real estate investments from lawsuits. This is where the DST really stands out. In addition to complying with California and federal tax laws, the DST provides you with an innovative legal barrier that can prevent a lawsuit before it even makes it into court.

Above, we talked about how the DST provides you with unlimited compartmentalization and anonymity. These two features inherently discourage lawsuits. When you invest in each property through separate “child” DSTs, you restrict the finances available for a court settlement. Like a Series LLC, the DST wraps each property in a liability barricade. Any lawsuit brought against one property can only take into account the value of that investment. Your personal assets, and those that are contained within other “child” DSTs, are untouchable. (As a general rule of thumb, most lawyers will not accept a real estate lawsuit that will not settle for $50,000 or more. In this sense, the DST discourages lawyers from accepting a case against you.) However, because of the blanket of anonymity created through the private nature of a DST itself, a lawyer may refuse a case against you outright. After all, to build a legal case against you, the lawyer would first need to identify who you are. The legal anonymity established with the DST makes this incredibly hard, and often, not worth the time for a lawyer to pursue.

When you combine the reduced net worth of an investment owned by a “child” DST and the difficulties of an anonymous owner – the majority of lawsuits end before you ever have to step foot in a courtroom.

Help When You Need It

We understand how important asset protection is for real estate investors in any state. We pride ourselves in our in-depth knowledge regarding asset protection, as well as our ability to help our clients find the most cost-efficient, streamlined way to keep their investments safe.

For real estate investors in California, we can help you establish a DST. We do so in a cost-effective manner, with no hidden fees. Because of our experience with tax regulations, we can help to minimize any penalties or fees and ensure the IRS treats your DST as a “disregarded entity”.

If you are a real estate investor in California, contact us today to find out how we can protect your properties together.

Series LLC For Investors in Alaska

The Series LLC confers so many benefits to real estate investors that many immediately want to know if their state permits this type of entity. After all, it is an infinitely scaleable option that allows you to grow your business indefinitely without you having to pay multiple filing fees or taxes on each new series entity. Read on to learn more about what the best options are for Alaskan real estate investors hoping to take advantage of the Series LLC.

Is There Such a Thing as an Alaska Series LLC?

At the time of this writing, Alaska does not offer a Series LLC. Alaska, like all other 49 states, does offer a Traditional LLC, but we do not recommend that owners of multiple properties rely on the Traditional LLC alone for asset protection. Those who do are risking all of their properties in the event of a lawsuit--a problem the Series LLC can help you avoid. Learn more about the benefits of a Series LLC over Traditional LLCs from our previous article on the subject.

However, just because you reside in Alaska does not mean that you are not stuck with the Alaska LLC as your only asset protection option.

How Real Estate Investors in Alaska Can Take Advantage of The Series LLC

There is some good news: real estate investors in Alaska can still have a Series LLC. In fact, an investor in any state can always form a Series LLC in a jursidiction that does allow for one. We do, however, have some preferences and recommendations about the best states for forming Series LLCs.

Both Texas and Delaware offer Series LLC options that offer some of the greatest protections of any of the Series LLC entities in the country. Both the Texas Series LLC and Delaware Series LLC are low-cost entities that an investor can take advantage of, regardless of where they live or which states they own property in. You never have to even have set foot inside the state where you form your new entity to reap the Series LLC’s many benefits. Learn more details about the specific benefits these states offer investors forming their Series LLCs.

What Royal Legal Solutions Can Do For Investors in Alaska

When Alaskan real estate investors get help from the legal professionals at Royal Legal Solutions, they can take advantage of the full array of asset protection options. If you wish to establish a Texas Series LLC or Delaware Series LLC, we can assist you today. Contact us to learn more about what Royal Legal Solutions can do to help you grow your real estate business cheaply and efficiently.

Series LLC For Investors in Alabama

Entities form the basis of asset protection plans. With all of the advantages a Series LLC offers real estate investors, it is only natural to wonder if your state offers this option. But that isn’t the only factor to consider. Read on to learn more about taking advantage of the Series LLC as an Alabama investor.

Does Alabama Offer a Series LLC?

Not every state offers its own Series LLC, nor are all Series LLCs created equally. Alabama began offering its Series LLC in 2017 with the passage of updated LLC legislation.

That said, Alabama’s Series LLC is a newer entity that is less established, which may give some investors pause. Further, Alabama investors are not confined to using the Alabama Series LLC. In fact, there is no particular advantage to doing so. Other jurisdictions, however provide Series LLC options with known benefits.

The Texas Series LLC has existed since 2009 and has proven to be a useful tool for investors across the country. Some advantages of the Texas Series LLC include a low, one-time filing fee, the lack of a state income tax affecting the LLC structure, charging order protection, and more. The Delaware Series LLC is another excellent option. Some investors opt for the Delaware Series LLC for the tendency of the state’s court systems to treat these entities favorably. Fortunately, both of these options are available to Alabama investors.

What Can The Series LLC Do For Me?

Regardless of where it is formed, the Series LLC offers some clear benefits for the real estate investor.

Streamline business. A Series LLC can allow you to control multiple properties from a single account.
Scale up indefinitely. Creating a new child series is as simple as creating a Series Document on your personal computer, signing it, and making copies for yourself, any business partners, and your attorney.
Pass through taxes for simple filing. Profits and losses are reported on Schedule E of your personal tax return.
Allow for taxation flexibility between child series. Since you do not have to tax all Series entities the same way, you can elect for S-Corporation taxation Status, Limited Partnership, or disregarded entity status according to what makes the most sense for your business.
Separate assets to limit liability and exposure to lawsuits. Stop lawsuits before they start by compartmentalizing your assets.

How Royal Legal Solutions Can Help Alabama Investors

Royal Legal Solutions offers the Alabama investor the opportunity to take advantage of the Texas Series LLC or Delaware Series LLC for an ideal asset protection strategy. Work with the experts at Royal Legal Solutions, you get the best asset protection plan for you. Contact us to schedule your personalized consultation today.

Can Each Series in a Series LLC be Taxed Differently?

A series LLC is a limited liability company that allows you to create multiple entities under one “master LLC”. Each new entity is called a “child series” and can have separate membership interests, assets, operations – and treatment for tax purposes.

Series LLCs are popular among real estate investors because it’s easy to add additional series and they provide excellent asset protection. They also provide flexibility in tax treatment, as you will see

Protection For Real Estate Investors

One of the primary benefits of using a series LLC is you only have the file the articles of organization one time. To add another series all you need is an operating agreement.

This cuts down on the state fees required to open and maintain separate LLCs and reduces the administrative burden of managing multiple LLCs.

For these reasons, series LLCs are popular among real estate investors and business owners who own multiple properties with different partners and structures.

Series LLC Tax Treatment: One Example

You are a real estate investor and professional property manager. And often purchase over 10 properties a year with multiple different partners.

You open up a series LLC and use one as a property management company that is taxed as an S-Corp. Whenever you purchase a property with a partner, you create another series owned by you and that partner, and it’s taxed as a partnership. When you purchase a property yourself you simply have it taxed as a disregarded entity.

Using the series LLC helps you reduce the filing and administrative fees associated with opening and maintaining a new LLC each time you by a new rental property.

Tax Risks of Series LLCs For Real Estate Investors

There is some uncertainty around the federal tax treatment of series LLCs as there are no laws or official guidance provided by the IRS.

But unofficial guidance from the IRS and a Tax Court decision are available. And they indicate that, at least in certain situations, treating each “child series” as a separate entity with different tax elections is appropriate

The Bottom Line

Generally, LLC’s are not used primarily for their tax benefits, but rather their liability protection.
However, due to the ease of adding additional series, liability protection, and flexibility in the tax treatment of each individual series - series LLCs make sense for real estate investors who operate businesses and purchase real estate with different partners under multiple structures.
And since there is no official laws or guidance from the IRS, it is important to work with a qualified CPA and attorney to ensure you’re following all the rules and regulations to maintain the liability protection of each series.

Author: Thomas Castelli, CPA is a Tax Strategist and member of The Real Estate CPA, an accounting firm that helps real estate investors keep more of their hard-earned dollars in their pockets, and out of the government’s, by using creative tax strategies and planning.

How Does a Series LLC Work?

The Series LLC will work it's much like a parent/child structure. At the very top, you'll have your parent, the series LLC. The state assigns an EIN number and an official formation document for the state (Delaware, Nevada, Texas, etc).

Below the series LLC, you have the actual individual series. You'll have series A, series B, etc. Therefore, these are what I refer to as the "children."

A parent Series LLC can have as many children series it wants. Each one of these series is going to be treated as if it were its own LLC, for liability purposes. So, we hold an individual property or asset in each given series. In the case there is a lawsuit resulting in action against a house in series A, it won't affect the house in series B, C, etc.

Now you may have the need to be able to do joint ventures as your real estate business grows. These function just like LLCs. Due to that Series C could be a joint venture agreement with as many people as you would like. It'll have its own EIN number, tax return and its own operating agreement to conduct the business of that JV agreement.

With a series LLC, what it will allow you to do is to expand your business in a very professional way, protect your assets. So with all of these companies and all of these assets that you own individually, this will pass straight up through the series to have one tax return. Which means thousands of dollars a year in tax preparation savings for you.

My name is Scott Royal Smith, I'm an asset protection attorney focused on real estate asset protection and I'd like to help you.

Why Lawsuits Against a Series LLC Go Nowhere

If you’ve got money, people want it. Lawsuits are one of the easiest, yet still legal, ways for people to take your money. The more money you have the more likely it is someone will try to take it from you in a lawsuit. The same applies to your LLC if you have one.

The more money you have located inside of any individual LLC, the more attractive it's going to be for someone to sue you. Lawsuits against a series LLC, on the other hand, are a dead-end for money-hungry lawyers and litigants.

Lawsuits are all about how much money can I get out of somebody, and if there's a million dollars sitting inside of an LLC in equity or cash, well, that might be something that I really wanna go after.

That's why you should limit the equity of any individual LLC to $200,000.

Note: This is not the case if you're using a series LLC for real estate, because series LLCs allow you to compartmentalize those assets. So, you don't have the same worries there that we do inside of a traditional LLC.

However, I think that usually a few million dollars inside a series LLC makes it reasonable to be able to create a new entity just in case. Why not? Expenses that you're being able to incur by having to create a new series LLC,are far less than the amount of risk that you pose when you're risking millions of dollars in equity.

You can read about what the IRS thinks about an LLC here. But know this: The more money or equity you have inside your individual LLC, the more attractive it’s going to be for someone to sue you. And when they do, all of your assets will be caught under one legal net.

That’s why, compared to an LLC, a series LLC offers far more protection for you and your assets when it comes to lawsuits. Compartmentalizing assets means you can spread your assets out so in case someone does sue you, only one of your assets will be at risk.