🏘️ Should I Use a Series LLC Instead of a Normal LLC If I Own Multiple Rental Properties?
By Mike Massey Law, PLLC – Asset Protection & Estate Planning in Texas
If you own multiple rental properties, you’ve probably asked:
Do I need a separate LLC for each one? Or is there a smarter way?
In Texas, the answer might be a Series LLC—a flexible, scalable structure designed specifically for property investors who want liability protection without all the paperwork.
Here’s what you need to know.
🧱 What Is a Series LLC?
A Series LLC is a special type of LLC allowed in Texas and a few other states.
It’s like one umbrella LLC (the “parent”) with multiple compartments or “child series” inside it—each one able to hold a different property or business activity.
Each series can:
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Own its own assets
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Have its own bank account
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Enter contracts independently
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Be shielded from the liabilities of other series (if done right)
✅ Benefits of a Series LLC for Rental Properties:
| Benefit | Why It Matters |
|---|---|
| Liability Protection | Keeps lawsuits, debts, and risks from one property from affecting the others |
| Cost Savings | Just one filing with the state; no need for 5 separate LLCs |
| Simplified Record-Keeping | One umbrella tax filing (in many cases), one registered agent |
| Scalability | Easily add new properties under new “series” without forming new entities |
⚠️ Key Considerations:
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You must keep good records for each series: separate finances, leases, and maintenance logs
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Not all banks understand Series LLCs—opening bank accounts may take some explaining
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Not recognized in every state—if you own out-of-state properties, check local laws
🤔 Should You Use a Series LLC or Separate LLCs?
It depends on:
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How many properties you own
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Where they are located
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How aggressive you want to be with asset protection
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How well you’re set up to keep books for each series
📌 Often Preferred by Investors:
If you own multiple rental properties and/or plan to keep buying more, a Series LLC might give you maximum protection and efficiency—especially here in Texas, where they’re fully supported under state law.
💬 Let’s Talk About Your Setup
At Mike Massey Law, PLLC, we help Texas real estate investors set up their Series LLCs right—whether for asset protection, tax efficiency, or estate planning.
📅 Book your free consultation today:
👉 https://mytxwills.com/book-a-meeting/
📜 Disclaimer
The information provided in this blog post is for general informational purposes only and is not legal advice. Reading this blog does not create an attorney-client relationship with Mike Massey Law, PLLC.
Please consult with a licensed attorney for personalized guidance.
