Secrets of the Series LLC | USTaxAid

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Secrets of the Series LLC

Written by Diane Kennedy, CPA on March 27, 2012

higherWho knew over 400 people would be interested in learning how a Series LLC may be the last business structure you ever need? That’s how many people took a seat at Saturday’s webinar “Secrets of the Series LLC.”

They learned how the Series LLC can provide privacy, less cost and the ultimate in flexibility. Even though only 8 states have Series LLC law, the Series can be used in most other states. Although, you do need to be careful with California and Ohio, who like to try to pull each subsidiary cell of the Series LLC into their own state for extra fees.

Please go to for more information on the Series LLCs.

We didn’t get to all of the questions during the webinar, so we’re going to cover them over the next few posts here at USTaxAid.

If you’ve got more questions, we can take them here at the blog. Or to find out how to contact us, plus get a special discount on your own customized Series LLC, please visit us at the above website.

Question: I live in TX, where the LLC Series is offered. But I don’t understand how the Franchise Tax Works? Is the Franchise Tax based on the net income I receive on the properties. What about when you have a loss on paper?

Answer: This is really a tax question, related to Texas tax. It doesn’t matter if you have an LLC, LP, S Corporation or C Corporation. The Texas Franchise Tax (aka Margin Tax) is a state tax that is imposed on a modified gross profit from the company. There are different ways to calculate this, one allows certain expenses as an expense against the gross income, another allows only payroll and another allows a percentage of expenses. The calculation pretty much insures that you will always have some profit because not all expenses are allowed. Remember, though, at least for now, there is a threshold amount of a little over $1 million.

If you need further help with your specific tax issues, you may want to consider joining our Coaching program or finding out about tax services.

Please check back in a few days for the next installment of Series LLC questions and answers.

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