Before the Texas legislature enacted the statutes creating the Texas Series LLC, real estate investors had to decide between (1) forming a business entity for each property or (2) holding title to multiple properties within one entity.

Insulating assets with multiple entities is ideal, but the administrative headaches and costs of forming multiple entities made this first option undesirable.

On the other hand, owning multiple properties within one entity had drawbacks as well (all properties would be subject to the liabilities of the entity). Real estate investors now have the best of both worlds.

The Texas Series LLC is quickly becoming the preferred business entity for real estate investors. By using the Texas Series LLC, real estate investors can now pay for (and maintain) only one business entity and get multiple liability barriers that used to require multiple entities.

With a Series LLC, each property can be owned by a separate cell (aka "protected series") of one Series LLC. Should one protected series be sued, the remaining protected series (and the real estate owned therein) would not be affected.