Limited Liability Companies (LLCs) are legal structures that legally separate you from your business. When you operate through an LLC, would-be litigants can sue the business structure, but they can’t sue you.
Royal Legal Solutions can help you set up your Texas LLC no matter what state you reside in. Texas LLCs are our favorite “first step” in building bulletproof asset protection plans.
Ideally, your LLC stands in for you. A traditional LLC structure handles everything that could incur legal liability (i.e. what people can sue you for). This versatile structure may be used alone to shield a single asset. It can also serve as a shell company in conjunction with a Series LLC.
The LLC is the legal owner of your property and assets. If something goes wrong with your business or personal life, money-hungry lawyers can’t find your money.
Texas LLCs are easy to manage. All you have to do is comply with the registered agent requirement and file a “No Tax Due” franchise form online.
Texas LLCs have a one-time cost and no annual fees. See our articles and videos about the Traditional LLC to learn more and to see how cost-effective these structures are for investors.
If the LLC owns more than one asset, a lawsuit involving one asset exposes all of the assets of the LLC. Pro tip: We can help you avoid this!
You can hold one asset in the LLC, but it is not ideal because each LLC will be required to file an annual tax return, pay filing fees and pay a registered agent fee.
Each Texas LLC requires one-time fees as well as yearly registered agent fees and tax filings. Hint: The Series LLC lets you create as many “LLCs” as you want with no additional costs.
A traditional LLC structure handles everything that could incur legal liability (i.e. what people can sue you for). This includes all of the operations (e.g. signing contracts). It is designed to be what people sue. Because it owns nothing, the plaintiff in a lawsuit will receive nothing.
Interested in finding out how to start an LLC? First, you should know that the traditional LLC is great if you have only one asset or if you hold a single asset on behalf of a partnership. Investors with multiple assets should go with the Series LLC instead.
Your personal situation will influence which entity is best for you. The experts at Royal Legal Solutions are trained to identify the personal factors that will influence your asset protection plan and craft your legal strategy accordingly.
Most states will require minutes, meetings and other formalities to ensure your LLC is in good standing. If you neglect even one area, the whole protection fails. In Texas, you don’t have any yearly requirements besides a “No Tax Due” franchise tax filing, which can be completed in five minutes online.
Texas does not have income tax for individuals or for companies.
Texas has notoriously strong company protection laws. Even if you make errors that would pierce the corporate veil (e.g. you made errors in your accounting records), Texas law will allow you to fix them and still be protected.
Cost effective: Texas does not have the yearly fee you’ll find in other states.
The Texas LLC is great if you only plan on having one asset or if you are holding a single asset on behalf of a partnership. For every other scenario, the Series LLC is better since it provides the same protection as holding assets in individual LLCs; offers scalability at no additional costs; and streamlines the tax preparation and company filings as if it were a single company.
An Assignment of Interest is the legal means for transferring the ownership of an LLC or other Company from one entity to another.
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