Entity Structuring - Series LLC for jointly owned properties?

[Brad Scott]

Hi everyone, 

My brothers and I are starting to invest in real estate (TX), we have 4 houses so far and would like to move them into an LLC for protection.

So far it seems a Series LLC would be perfect since it allows us to separate the liability of each property with out lots of LLCs, but TX doesnt allow for anonymity. So im seeing people use WY holding companies as the owner to maintain anonymity. Would that work with a series LLC? Would i still have to register as a foreign entity in TX and nullify the anonymity?

Would you recommend this structure? Or is there a better way for a partnership? Thanks!

[Account Closed]

If you are "doing business" in Texas you will have to register as a foreign entity. Since you are buying rentals and that is considered doing business, yes, you have to register. I own a Wyoming LLC that owns registrations in multiple other States and some require ALL owners of the LLC to be listed even if the Texas llc is registered by an agent, basically removing the anonymity you once had with the Wyoming LLC in the first place. It is pretty complicated so I truly recommend you get with a lawyer to plan out your business structure with the goals you are trying to achieve PRIOR to doing any more business. It is far more difficult to go backward.

This might help as well: https://www.sos.state.tx.us/co...

I am not a lawyer or tax professional.  My comments are intended to add depth to the conversation and hopefully help others find the answers they are seeking as I myself do the same.  In the end, seek licensed professionals to protect you and your assets.  I am not giving advice, just my own opinions.