Advice needed from anyone who uses series llc

[June F.]

After talking to a lawyer, we are pretty sure we want to set up a Texas "series" llc to hold the rental properties and another LLC to manage the rental properties that we have but there are some issues that boggle my mind about it, so help from anyone who is actually managing their properties this way would really be appreciated.

My questions are: 1. Do you maintain a separate bank account for each property in the series LLC? 2. Do you pay a fee to the managing LLC for each property it manages? 3. How do you take distributions? From the holding llc or the managing LLC? Thanks in advance on a very confusing subject!

[Steven Hamilton II]

Originally posted by @June F.:

After talking to a lawyer, we are pretty sure we want to set up a Texas "series" llc to hold the rental properties and another LLC to manage the rental properties that we have but there are some issues that boggle my mind about it, so help from anyone who is actually managing their properties this way would really be appreciated.

My questions are: 1. Do you maintain a separate bank account for each property in the series LLC? 2. Do you pay a fee to the managing LLC for each property it manages? 3. How do you take distributions? From the holding llc or the managing LLC? Thanks in advance on a very confusing subject!

Be careful as some states required your to be licensed to manage properties held by another entity or to run a property management company. You may want to consider setting up an account for each property for the tenants to pay into. If you have A TON of property that can be a lot to manage so you may use an operating account that collects. Pay everything from t here into the master account and then take your distributions from there. Are these held personally or with a partner/spouse? TX is a community property state so if you live there you will not default to a partnership with your spouse; however, it may be something to consider in order to mitigate 1. an Audit and 2. more separation from the LLC.