name of the series LLC, i.e., Example Holdings series LLC ‐Series A. If you don’t make this filing, the state doesn’t give that Cell the full, independent legal standing from the rest of the structure. A series limited liability company is a special form of LLC that is authorized by state law to hold assets in one or more series. A series LLC, formed under Texas law, is an LLC that provides in its governing documents for the establishment of a series of members, managers, membership interests, or assets that have separate rights, obligations and liabilities and business purposes from the general LLC. The limited liability company ( LLC ) has been an incredibly popular business structure for decades, but in the grand scheme of things, it’s still a relatively recent addition to the American business landscape. Under Texas law, a series LLC is defined as an LLC that “provides in its governing documents for the establishment of a series of members, managers, membership interests, or assets that have separate rights, obligations and liabilities and business purposes from the general LLC.”

An SLLC is not actually a distinct form business entity, but rather is an ordinary limited liability company that has been authorized to hold its assets in separate "cells" or "series." This incorporation means that if an individual series of a Texas series LLC owns assets secured by a debt, then the individual series can be named on the UCC-1 financing statement that is required to perfect a lender's security interest. The Texas Series LLC. The Master LLC can then create a subsidiary series LLC by performing two simple steps: (1) preparing a supplemental addendum to the company Operating Agreement and formally naming the subsidiary series, and (2) filing an Assumed Name Certificate with the Texas Secretary of State identifying the subsidiary series LLC as owned by the Master LLC.

Each series serves as a liability container. Series LLCs are often used as an alternative to a holding company structure.

Texas adopted legislation in 2009 allowing for series limited liability companies (SLLCs). That’s probably because Illinois requires Series LLC owners to prepare and file a 1-page document formally naming each Cell. A series LLC Texas is a variant of a traditional limited liability company (LLC) that has been authorized for use in this state. Texas Series Limited Liability Companies Generally. The difference between a standard LLC and series LLC is that the language used in the company agreement and certificate of formation for series LLC allows for the creations of sub LLCs, also called series, within the main company. How to Form a Texas Series LLC + An IMPORTANT Note If you’re interested in forming a series LLC in Texas, read on to find out how it’s done. ‐Avoid cross‐collateralization among series, if possible.