Why the Series LLC works well for holding real estate
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 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 only one business entity and get the liability protection that normally takes multiple entities. This is because each property can be owned by a separate series within one Series LLC. Should one series be sued, the remaining series (and the real estate owned therein) would not be affected.