🏨 Step-by-Step Critical Checklist for Series LLC’s from pre-creation through updating leases
Forming a Series LLC is a powerful first step toward protecting your rental properties. But the job isn’t done yet. If you want your Series LLC structure to actually shield your properties from liability and probate, there are several essential actions you must take.
Here’s your step-by-step checklist:
✅ Step 1: Create the Living Trust
Make sure your Series LLC is owned by your revocable living trust to avoid probate and provide smooth control transition if you pass away or become incapacitated.
✅ Step 2: Choose a Name for Your Series LLC
Make sure your desired LLC name is available. Use this link to check existing business names in Texas: Texas Comptroller Entity Name Search
✅ Step 3: Check With Your Lender
Before transferring property into an LLC, check with your mortgage lender to avoid triggering a due-on-sale clause. Related blog:
Can I Put My Rental Property Into an LLC If I Have a Mortgage?
✅ Step 4: Form the Series LLC and Make the Trust the Owner
Once your trust is created and named, Mike Massey Law can prepare the necessary filings with the Texas Secretary of State to properly establish the Series LLC with the trust as the sole member.
✅ Step 5: Obtain an EIN (Employer Identification Number)
Apply for an EIN from the IRS for your Series LLC: Apply for EIN from IRS
- Most people only get one EIN for the parent Series LLC.
- Some choose to get an EIN for each child Series—but it’s not required.
- You may elect S Corp status later if desired—speak with your CPA for advice.
✅ Step 6: Deed Each Property to Its Own Subsidiary LLC
Each rental property should be deeded to a different child Series within your Series LLC. Make sure:
- The deed is recorded with the County Clerk where the property is located.
- Recording fees are usually $25–$40.
✅ Step 7: Create and Sign Operating Agreement Schedules
Attach a Schedule to your operating agreement for each Series. Include:
- Property address
- Series designation (we typically do it as: “NAME OF SERIES LLC — Series ADDRESS OF PROPERTY (exclude City, State, Zip) P.S.”)(e.g., “XYZ1, LLC — Series 123 Leaf Circle Ave P.S.”)
- Date of creation and contributions
Sign each Schedule to ensure clear Series documentation. This is at least how we set up our operating agreements, but yours might be different.
✅ Step 8: File a DBA (Assumed Name Certificate) for Each Subsidiary LLC
File Form 503 with the Texas Secretary of State to register a DBA (Doing Business As) name for EACH Series.
✅ Step 9: Update Property Insurance
- Each property should have an insurance policy listing the correct child Series as the insured.
- Work with your insurance agent on this and any other insurance you may want or need.
✅ Step 10: Review or Update Title Insurance
Title insurance doesn’t always carry over after transferring property into an LLC.
- Contact your title insurance company to check.
- Update policies or endorsements if required.
✅ Step 11: Update Leases
If the property is now owned by a subsidiary LLC, all lease agreements should:
- List the correct Series as the landlord
- Use consistent names on notices, deposits, and payment instructions
✅ Step 12: Buy New Properties in New Series LLCs
Each time you buy another rental:
- Create a new Series under your existing LLC
- Buy the property directly in that Series name
- Add a new Schedule to the operating agreement
- File a new Form 503 for the new Series’ DBA
✅ Step 13: Consider Creating an Operating Arm
Designate one of the Series (e.g., Series M) as a property management company to operate all others:
- Centralize lease management and repairs
- Further isolate liability between Series
Read more in our blog:
Can I Use a Series LLC to Separate My Real Estate and My Operating Business?
✅ Additional Steps
- TBD on a case by case basis
📚 Other Helpful Blogs:
- Should Your LLC Elect S Corp Status?
- Scammers Are Targeting LLC Owners Due to the FinCEN Debacle – Beware!
- Why Texans Should Not Put Their Homestead in an LLC
- Just Transferred Your Rental to an LLC? Here’s What to Do Next.
✅ Final Thoughts
Creating a Series LLC is only the beginning. Protecting your real estate portfolio requires following through on each of these steps—especially documentation, insurance, and DBAs.
We listed as many steps of the process to be thorough, but don’t take this as legal advice.
📆 Book Your Series LLC Setup: www.mytxwills.com
🌐 More Info at www.mytxwills.com
⚠️ Disclaimer:
This blog is for informational purposes only and does not constitute legal, tax, or insurance advice. Reading this blog does not create an attorney-client relationship. Please consult with your attorney, CPA, insurance provider, and county clerk before acting.
