What is a Series LLC?
A Series LLC is a special form of limited liability company that allows a single parent LLC to create multiple internal series (sub-LLCs), each with its own assets, liabilities, and members. Each series is legally separate: the debts and liabilities of one series cannot be used to satisfy claims against another series or the parent LLC. This structure was designed specifically for real estate investors who own multiple properties.
How it works
Instead of forming a separate LLC for each property (which requires separate filings, fees, tax returns, and bank accounts), you form one Series LLC and create a new series for each property. Each series operates independently with its own bank account and records, but only one state filing and one federal tax return are needed.
Cost comparison
| Structure | 10 Properties | Annual Cost |
|---|---|---|
| Separate LLCs | 10 state filings, 10 tax returns, 10 bank accounts | $5,000-$15,000 |
| Series LLC | 1 state filing, 1 tax return, 10 bank accounts | $1,000-$3,000 |
States that allow Series LLCs
As of 2026, Series LLCs are authorized in roughly 20 states including Texas, Delaware, Illinois, Nevada, Utah, Wyoming, Tennessee, and several others. The legal framework varies by state. Texas has been a Series LLC state since 2009 and has well-established case law.
Limitations
The Series LLC concept is still relatively new and untested in many courts. Cross-state enforcement is uncertain: if your Series LLC is formed in Texas but you own property in a state that does not recognize series, the liability protection between series may not hold. Banking can be challenging as some banks are unfamiliar with series and may require separate accounts or documentation. Title companies may need education on how to handle series as grantees.