Welcome to the Kazi Law Firm! We are a boutique law firm steeped in Texas tradition personifying the warmth and congeniality consistent with southern hospitality. We believe in preserving integrity and professionalism with true Texan charm, staying true to our roots, while providing essential, affordable legal services to all. Located just north of Dallas, Texas in the rapidly growing suburb of Frisco; the Kazi Law Firm concentrates on contracts drafting and review, immigration law, will & estates, real estate law, landlord, tenant, mediation, and general business law needs.

One of the most commonly formed legal entities in the state is the traditional LLC (limited liability company), which you may be familiar with. But, have you heard of a Series LLC? Today, we are going to discuss this unique and relatively new business structure in the state of Texas.

Overview: A Texas Series LLC is a traditional LLC that has adopted special language within the governing documents to authorize the use of “series” or cells. A Series LLC can have multiple series within a one LLC framework. As such, it is often used as an alternative to a multiple LLC structure.

A Series LLC is simply a limited liability company that owns multiple divisions or sectors. The different entities within the company are all housed under a master LLC, which serves as an umbrella entity. Seventeen different states have legislation regarding series LLC, with Delaware being the first state to offer such legislation in 1996. Since then, 16 more states have added business legislation that recognizes series LLC companies. Texas passed legislation in 2009.

Series LLC laws essentially removed requirements that each company had to be listed and filed separately. It made it possible to create new businesses, with private management, without having to file to incorporate a new business.

The company agreement for a Series LLC is slightly different than with a traditional LLC and must include language that agrees the debts and creditors of one company will not be the responsibility of the other. The operating agreement also must ensure separation of liability between the series and the LLC as they are each separate entities.

It is important to note that the books and records for each series must be kept separately and the best practice is to have separate bank accounts for each series. It is also important to remember that the financial health of one series does not automatically mean financial health for the others, so it is important to manage each series as an individual entity.

What are the Pros of a Series LLC?

Flexibility:

Companies are offered more flexibility in their management and liability shields. By allowing for series companies to be developed under one umbrella, companies are also afforded more flexibility in who holds the assets. Assets may be held under the series, under the LLC, or through a nominee.

Taxes:

Series LLC status can also save business owners money. In the past, each new company would need to be formed as an independent LLC and would be responsible for the setup fees, franchise fees, and filing fees of each independently formed LLC. With a series LLC, there is one setup fee, one franchise fee, and fewer filing fees. In some states, it can save several thousand dollars per year.

Liability Protection:

For the simple reason that each series is viewed as legally separate, the master LLC and each series can not be held liable for the debts and obligations of another. For example, the debt of Series Company X cannot be transferred to Series Company Y or the umbrella they are operating under.

What are the Cons of a Series LLC?

Difficulty Contracting:

As mentioned before, series LLCs are a relatively new business entity and therefore, not all states recognize series LLCs. There can be difficulty in contracting with other states. Operating under the series LLC distinction does not pose problems in states that recognize the filing, but issues can arise in states that do not offer a series LLC distinction. There are currently 17 states that have legislation, but that means there are many states that do not recognize the distinction. In such states, the business will be identified as a traditional LLC.

Lacking Precedent:

Some will argue that there is not enough case law for series LLCs. While legislation in the states where it is allowed gives a clear-cut picture of how the entity operates, it is hard to get a full picture of how series LLCs will be dealt with on the federal level and how they will hold up in some foreign courts. Some highly complicated questions about how the IRS recognizes the concept remain, outstanding as well.

As you can see there are distinct pros and cons associated with forming series LLCs. Is it the right business entity for you? The Kazi Law Firm will help you decide what business structure is best suited for your current and future goals.

I built my law practice on the premise of being a life raft in a sea of sharks. I want to be an advocate for those that have been wronged and are too intimidated to seek help. My firm is here to explore your options, guide you through your legal journey, and give you that safe space to ask questions! There’s no such thing as a stupid question…Only the ones you don’t ask. So, my question to my clients is not “do you have any questions?” But rather “what questions do you have?”

As always, the Kazi Law Firm is standing by to help you in your time of need. Don’t hesitate to contact us today. We specialize in real estate law, landlord-tenant disputes, immigration, and wills & estate planning. Family is at the core of our practice. Just as we treat our family with respect and understanding, we treat yours. Come join the Kazi Law Firm family today!

Why swim alone in shark-infested waters when you don’t need to?

Related Posts

7 Responses
  1. Ηelloǃ
    Ρеrhарs mу messаgе iѕ too speсifіc.
    Вut my оlder siѕtеr found a wоndеrful man hеre and thеу havе а grеаt rеlаtiоnѕhіp, but what аbout mе?
    I аm 28 уеаrs old, Мarіа, frоm thе Сzech Republic, knоw Еnglіѕh lаnguagе alѕо
    And… bеttеr to sау it іmmеdіatеlу. I am bіѕеxuаl. Ι аm not ϳealous of anоthеr wоman… espеcially if wе makе lоvе togеther.
    Ah уes, Ι сооk vеry tаsty! аnd I lоve nоt оnly соok ;))
    Ιm rеal gіrl аnd lооking fоr serіouѕ and hot relatіonship…
    Αnуwaу, уou сan find mу profіle hеre: http://encr.pw/9kzpt

  2. instagram logo png files clip art png [url=https://www.sliviagraed.com/#50268907]sildenafil citrate 25mg tab[/url] nfl teams list qbs ranked today 2021

  3. Dayanafrasp

    Slightly off topic 🙂

    It so happened that my sister found an interesting man here, and recently got married ^_^
    (Moderator, don’t troll!!!)

    Is there are handsome people here! 😉 I’m Maria, 25 years old.
    I work as a model, successfull – I hope you do too! Although, if you are very good in bed, then you are out of the queue!)))
    By the way, there was no sex for a long time, it is very difficult to find a decent one…

    And no! I am not a prostitute! I prefer harmonious, warm and reliable relationships. I cook deliciously and not only 😉 I have a degree in marketing.

    My photo:
    [img]https://i.ibb.co/zhMSQpj/5489819-2-3.jpg[/img]

    ___
    [i]Added[/i]

    The photo is broken, sorry(((
    Check out my blog where you’ll find lots of hot information about me:
    https://mma-pop.ru
    Or write to me in telegram @Lolla_sm1_best ( start chat with your photo!!!)

  4. Esaqzppopsy

    Our planet is continually evolving, and it’s essential to remain up-to-date about the most recent developments. Regardless of whether you are interested in modern technology, medical, finance, or any kind of various other area, there is constantly something new to discover. Along with the rise of the internet, gaining access to info has become much easier than ever. However, it’s essential to count on trusted sources of information and to constantly come close to data with a important viewpoint. By, we make sure that we’re making informed selections and remaining in advance in a progressively regularly changing world: [url=https://gamblingsage.org/]online gambling for real money[/url]

  5. Bhoblhpopsy

    I was really itching to fix it some wager some money on some sports matches that are episode right now. I wanted to disillusion admit you guys be familiar with that I did twig what I reckon with to be the kindest plat in the USA.
    If you destitution to get in on the engagement, verify it out: [url=https://pokeronline.guru/online-gambling/]online gambling sites[/url]

  6. Twxqrppopsy

    In today’s dynamic world, staying informed is essential. Whether it’s breaking news or deep insights, our content aims to educate and motivate readers worldwide. We are dedicated to delivering reliable information that can transform lives. From cutting-edge technologies to cultural phenomena, we cover a diverse range of topics to satisfy your curiosity. Join us as we dive into the topics that matter, presented by leading voices in the field. Your journey to enhanced insights begins here. Stay engaged with us, and unearth the information at your fingertips. [url=https://octanecasinos.com/credit-cards/]casino credit cards[/url]

Leave a Reply