You have worked hard to accumulate assets for you and your family. Don’t leave their protection and security to chance.
Limiting Risk in Multiple Rental Real Estate Holdings through use of the Limited Liability Company or “LLC
Generally speaking, business assets are appropriately held in business entities under Texas law you have the ability to limit risk and liability through the creation of multiple subsidiary LLCs (“series”) under the registration of a master LLC. Each series holds one rental property, affording separate liability protection for each of the properties held within the respective series.
- Protection from personal liability
- a single certification of formation for the Master LLC with the Secretary of State, which results in savings each instance when an additional Series LLC is created.
- One Master LLC/Unlimited Series LLC.
- Seperate liability for every Series LLC.
- Reduced administrative expenses
- Less complex than corporation/subsidiary structure.
Use of Trusts can Limit Risk and Preserve Privacy
The family or “Land” trust can be used to provide asset protection by discouraging litigation and privacy by holding property in the name of the trust instead of trust beneficiaries.