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Converting standard LLC to Series LLC in Texas

1) Does anyone know the procedure to convert a standard LLC to Series LLC in Texas ?





4 Replies
Level 15

Converting standard LLC to Series LLC in Texas

This is more of a legal question and not a tax question. Not all states provide for a Series LLC (Texas does), and the laws on this can differ among states that do allow this. I would suggest you seek the services of a Business Attorney or other legal professional in Texas that is well versed in this.

Converting standard LLC to Series LLC in Texas


Converting standard LLC to Series LLC in Texas



See https://www.sos.state.tx.us/corp/formationfaqs.shtml#LLC2


You should be able to amend your LLC filing, but professional assistance is recommended.

Converting standard LLC to Series LLC in Texas

I will add a couple of comments:

  • I also agree that you get professional assistance so you understand the tax and legal implications.
  • Make sure the operating agreement allows for the Series LLC
  • There are numerous "less than clear" open questions in this area.  
  • While the current federal treatment is filing a single "master" LLC tax return, make sure you have excellent separate books and records for each series to support the separate liability issue.
    • The single LLC tax return will reflect ALL income, expenses, assets and liabilities on a single return.
    • This is NOT like a consolidated C corporation tax return where each subsidiary is reflected separately and then consolidated at the parent level.
  • Don't be penny wise and pound foolish in this venture.  Penalties, and legal issues, could certainly outweigh any professional fees.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
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