LLC Planning Attorney
Flat fee structure means no surprise costs.
Custom solutions to protect your legacy.
7 generations in Denton, Texas.
LLCs protect you from liability.
For most investors, the most valuable quality of the LLC is the liability protection it provides its owners. LLCs allow you to separate your personal assets from your business assets, which gives you protection from LLC debts and protects the LLC from your debts.
This separation means that if real estate owned by your LLC is at risk from litigation or creditors’ claims, your personal assets will not be at risk (with a few exceptions).
By taking careful steps toward distinguishing your personal property from LLC holdings, you can utilize the LLC to provide greater protection against personal liability.
LLCs have flexible tax options.
Another factor you should consider is the tax impact of creating an LLC.
Single-member and multimember LLCs that hold real estate can enjoy the benefit of pass-through taxation. In some cases, transferring your real estate into an LLC may not have a significant or immediate effect.
However, you may have significant tax issues to consider depending on how many owners your LLC has, whether you have a mortgage, and the value of the property.
LLCs protect your privacy.
Creating an LLC can provide greater opportunities to keep information about what you own private, especially when coupled with a living trust.
Property ownership in Texas is a matter of public record; some counties even have free searchable websites for tracking down property owners.
We will help you structure your business so that the public at large cannot learn about what you own. This can be a helpful asset protection strategy if you could ever be involved in litigation or if any of your properties are exposed to risk.
LLCs can be tailored to fit your specific needs.
Finally, one of the most important benefits of the LLC is the opportunity to tailor the structure of your business.
This means that you can define how you will split profits and losses, how decisions will be made, and how your company will be owned when you retire or if you pass away. These are just a few ways you can enjoy the flexibility provided by an LLC, but there are many more.
Some people create multiple entities, with one LLC focused on the management of the real estate while the other LLC or subsidiary LLC owns the assets.
From determining your LLC’s tax structure to deciding whether to have annual meetings, we can help you design your company’s structure so it will function in a way that makes sense for the assets it owns.
We Can Help
If you are interested in exploring the use of an LLC for your real estate, or if you’d like to hear more, we can help. We are ready to help you design your LLC and structure it in a way that provides the most protection for you and your assets. Schedule a virtual meeting with us today.
Schedule a meeting now To Start
The best time to plan your legacy was 10 years ago. The next best time is today. Everyone needs estate planning – the good news is it’s never too early and if you’re reading this, it’s not too late.
Frequently Asked Questions
LLC planning is the process of creating and structuring a Limited Liability Company to protect personal assets, define management roles, and ensure legal and tax compliance.
Planning an LLC involves selecting a business name, choosing members, drafting an operating agreement, filing formation documents with the state, obtaining an EIN, and setting up legal and financial structures.
Steps include deciding on members and management structure, drafting an operating agreement, choosing a name, filing the Certificate of Formation, designating a registered agent, and complying with state regulations.
Benefits include limited liability protection, pass-through taxation, flexible management, credibility with clients and vendors, and easier transfer of ownership compared to other entities.
An LLC offers liability protection like a corporation, but with pass-through taxation like a sole proprietorship or partnership, providing a flexible middle ground for business owners.
Texas LLCs benefit from pass-through taxation, meaning profits and losses pass directly to members’ personal tax returns, while avoiding double taxation. State franchise taxes may apply.
Checklist items include selecting a name, filing formation documents, drafting an operating agreement, designating a registered agent, obtaining licenses and permits, and setting up financial accounts.
Costs include state filing fees, attorney or service fees, registered agent fees, and potential publication costs. Planning costs vary depending on complexity and professional assistance.
The name must be unique, comply with Texas naming requirements, include “LLC” or “Limited Liability Company,” and not be deceptively similar to existing entities.
An operating agreement outlines management structure, ownership percentages, voting rights, profit distribution, procedures for adding or removing members, and rules for transferring ownership.
A registered agent must have a physical address in Texas, be available during business hours to receive legal documents, and maintain a reliable means of communication with the state.
Mistakes include not drafting an operating agreement, failing to maintain compliance, mixing personal and business finances, not selecting the right management structure, and ignoring tax implications.
Transfer assets and operations to the LLC, update contracts and bank accounts, notify clients and vendors, and ensure proper legal filings with the Texas Secretary of State.
Typically, formation takes 1–3 weeks if filed online with the Secretary of State, but timing can vary depending on processing and any required additional approvals.
An LLC separates personal assets from business liabilities, limits personal exposure, and can be combined with insurance and other legal structures for enhanced asset protection.
