Each sub-series can own assets (i.e. real estate), (2) borrow money, (3) incorporate different ownership and/or management structures (not recommended), (4) have a different business purpose, (5) sue and be sued, etc. The primary benefit of a Texas Series LLC is the start-up cost. There is a one-time state filing fee of $308.10 to create the Series LLC or Master LLC. After the Series LLC is created, it will only cost about $50 in recording/ filing fees to create each sub-series. The downside to a Series LLC is the legislature created a caveat to the firewall that is associated with a sub-series. The firewall only exists if the records maintained for a particular sub-series account for the assets associated with that sub-series separately from the other assets of the LLC or any other sub-series. It should not be difficult to comply with this caveat, but you may have to prove compliance every time a sub-series is sued. Proving compliance will likely require a hearing along with the disclosure of financials which will feel very intrusive especially when handing over to an adversary (n.d., The Copp Law Firm).
cxlii
Powered by FlippingBook