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Written by : Anh Witcraft
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a table in this video we need to talk
Thanks for your comment Kacy Grabauskas, have a nice day.
- Anh Witcraft, Staff Member
hi out there in youtube land i'm lauren with cadillac law i am a texas lawyer and i am here to teach you about the law specifically in texas and make it fun hopefully i am not giving legal advice in this video and nothing here should make anyone believe that we have an attorney-client related relationship not between myself or my firm or any of the viewers and of course if you have a legal issue i do want you to call my office or see an attorney just like medical go see a doctor and as always before we get into the good stuff please look down hit subscribe like if you have questions and you would put them in the comments that will help everybody learn so i would really greatly appreciate you doing that subscribing is free and it helps me grow my viewership reach more people share knowledge knowledge is power all right so today we're going to get right into the series llc so i had spoken about llc's and kind of gave an overview and drew for you uh if you remember my oh gosh i said okay my stick figure who was you you created an llc and you were selling widgets and the person got hurt so in this uh in this scenario in a series llc which is what we're going to talk about today you are not only a widget maker you are a landlord and you own these are houses again guys this is not art i am not an artist okay so bear with me these are the houses that you are investing in and so currently your houses are just in the llc a regular llc all of them and your widget business but what happens is i go into property b and i break my leg and my nose which is my favorite facial feature so it's worth a lot and i'm so upset i take you to court i get a huge judgment it was my left leg which had never been broken before and my favorite facial feature i'm getting a ton of money and now i have this judgment and i'm the judgment is against the llc not you remember we talked about the corporate bill so it's against the llc but that means i can take anything so i'm i'm taking property b i'm taking c i'm taking a and i might even own part of your widget company if i have a good attorney so how do we prevent that the series llc hold on i have to obviously i can't art okay so in the series llc you have the llc limitations to you but you're creating that llc limitation around each property so in this case the widget business is one property c is a property b is a property a is a property so the series llc basically makes it so each one of these is in its own llc but you only have to do one filing with the secretary of state so it saves you a ton of money over time and what that does in terms of when i fall in being and i get my judgment well as you can see b is stuck in this square b is stuck in the square so all you're going to be able to get is what's in the series that is included in b and in this scenario it was just the real estate in b so even though my beautiful precious nose is never going to come back all i can get is b because you had a series llc now i have to tell you and a lot of clients like oh you do have to get what you do is you get an ein with the llc through you so you're still going to have the same kind of taxation the flow through right but then each time you open a series like every property you buy or each new series that series will get an ein that flows up through this llc so it's series into llc and then llc into you so you do have to keep separate accounting for each item in the series but if you're a real estate investor and you have more than one property you should have separate accounting for those properties anyhow it's not like i'm really asking or anyone's really asking a whole lot here this is actually relatively easy and really could keep you organized and will prevent a lot of legal liability now i've had pushback from one person one time he was a lawyer in his past life and he says well the supreme court hasn't ruled on these things that is true but unlike him i see the lack of supreme court guidance as an opportunity uh it's not a risk in my mind so you go and you follow the rules about the series llc and you do it right and if you end up having to go to the supreme court you go to the supreme court i mean it's probably not going to happen but if it ever did you could then get that guidance you could also make arguments and be part of the guidance for the future in my mind that is never a bad thing all right so i recommend series llc for everybody who is an investor and i usually like to put them inside of a trust which i have another video which you can link to about trusts because they that adds additional security for you and um for the things that are in your name also it allows for the trustee to continue to manage the business if anything happens to you and you know most people who are investing in real estate are doing that for an income so certainly if something happened to you and it's in a trust and say you had a spouse that's relying on that income the trust can still do the work and can still continue to get that income for your spouse instead of putting like a full stop for probate which does happen so i hope you all have learned something today i'm a huge fan of series llc's i am not a huge fan of art well no i'm a huge fan of art i'm not a huge fan of making the art on my own i hope you forgive me and i hope you've learned something have a beautiful day
Thanks Britteny your participation is very much appreciated
- Anh Witcraft
About the author
I've studied solid-state chemistry at Paul Quinn College in Dallas and I am an expert in physics education. I usually feel alone. My previous job was photographer I held this position for 22 years, I love talking about ultimate frisbee and swimming. Huge fan of Melissa Ordway I practice paintball and collect pin-back buttons.
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