Texas Series LLCs & Recent Changes To The Texas Business Organizations Code

Texas Series LLCs & Recent Changes to The Texas Business Organizations Code

The 2021 Texas Legislature made significant changes to statutory provisions governing Series Limited Liability Companies. Largely, they make Texas law governing Series LLCs more consistent with Delaware's statute, the leading state series LLC statute. These important changes bring additional flexibility to companies, investors, and entrepreneurs in planning business affairs and intracompany relationships through Texas Series LLCs.

By providing additional definitional clarity regarding the rights and existence of series within an LLC, the recent changes will further the original purpose Texas Series LLCs: to help businesspeople avoid administrative complexity and expenses caused by replication of separate LLCs for related companies, projects, or asset-pools. For instance, instead of forming a separate LLC for each property, a real estate investor group can organize a single company and