TX Series LLC and Structure/Taxation

[Andrew M.]

Howdy everyone, I've got a question for you tax and legal gurus. I'm getting highly differing feedback from my lawyer and CPA on the proper structure and taxation of Texas Series LLCs.

The CPA is advising that each series must file it's own return because each of the series have myself/my wife as partners on the Company Agreement. To be treated and taxed as one, the 'master' would need to be listed as the owner/member of each of the series to have the 'flow through' advantage.

The lawyer is advising that this is not possible, that the master and the series are one in the same, and that all of her previous clients have been able to file the series as one return through the master.

The difference here is quite a bit of filing fees from the CPA for multiple returns, all of which only have one rental home each. What say y'all?

[Lance Lvovsky]

The Series LLC is a subset of an existing LLC (master/parent LLC). Generally speaking, only a tax return is required for the master/parent LLC.

However, separate books and records for each Series LLC is recommended.