May 15, 2022 Business Article:
BUILDING WEALTH IS A PR TH IS A PROCESS SO THE ASPIRANT MUS SPIRANT MUST PLAN TO BE SECURED AND COMFORTABLE FIRST TO EVENTUALLY BECOME RICH Texas is one of several states where you can form a Series LLC. A Series LLC is a unique type of limited liability company that can establish divisions, called “series,” with purposes, rights, and obligations separate from the parent LLC and each other. The basic idea behind forming a Texas Series LLC is that it allows an organization to segregate and protect assets without being forced to start numerous independent limited liability companies. A series of a Texas Series LLC is not actually a business entity separate from the parent organization, but it behaves a lot like a separate business entity. A series of a Texas Series LLC can enter into its own contracts, for instance, have its own assets, and sue and be sued. If properly established and maintained, a series of a Texas Series LLC is typically not liable for the obligations and debts of other series or its parent LLC. To form a Texas Series LLC, we must complete and file the Certificate of Formation with the Texas Secretary of State. This is the same form submitted by an ordinary Texas limited liability company, but a Texas Series LLC’s Certificate of Formation must include an additional provision called the Notice of Limitation on Liabilities of Series. LLC is neither a corporation nor a partnership, but rather a distinct type of entity governed by the text of Section 101.601 n 101.601 effective on June 01, 2022, p e 01, 2022, pursuant to SUBCHAPTER M. S APTER M. Series Liability Company of the Texas BOC (n.d., Business
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