This website is a service of DAVID J. WILLIS ATTORNEY & REAL ESTATE BROKER, a Texas law firm established in Houston in 1979. Its purpose is to provide asset protection services online, including formation of Texas Series LLC´s and Nevada Series LLC´s (or a combination of the two) to achieve asset protection including anonymity, deterrence of lawsuits, and insulation from judgments. We recommend the new Series LLC (available in both Texas and Nevada) which compartmentalizes assets and liabilities allowing the same company to safely hold multiple properties or businesses. The result is simplicity, economy, and efficiency since it is no longer necessary to have an excessive number of entities. We find that our recommended two-company structure (a shell management company plus an asset-holding company) is an effective solution for most clients.

Two key points: you do not have to be a resident of Texas to establish a Texas Series LLC, but you must have a registered agent with a street address in Texas (this office may serve as your agent); and your Texas Series LLC can own any kind of property located anywhere in the world. The same is true for Nevada Series LLC´s.

Texas is now the most favorable state in the United States in which to do business and engage in asset protection. Why? In addition to an excellent recently-revised Business Organizations Code, no other state exempts the entire value of the homestead and personal vehicles from execution on a judgment, prohibits garnishment of wages, and protects both retirement and college tuition plans (See our article on the Texas Homestead above). In addition to forming a Texas Series LLC, Texas investors and businesspersons should review their portfolio to make sure they are maximizing these protections.

Our asset protection articles (located at the blue buttons above) contain free, detailed information that could cost thousands of dollars at a downtown law firm. Many more articles pertaining to Texas real estate law generally are available on our companion site, www.LoneStarLandLaw.com. For a quick overview of the Texas Series LLC and asset protection, view our powerpoint presentation (click the icon to the right).

Texas LLC and Asset Protection Attorney
Texas LLC Attorney Board Certified - Residential Real Estate Law
Board Certified - Commercial Real Estate Law
30 years experience in transactions & litigation
AV Rated for ethics and professional ability
Licensed Texas Real Estate Broker
Former adjunct professor of law


Texas LLC Information
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ASSET PROTECTION PLAN FOR TEXANS

Asset protection is the lawful structuring of assets into one or more proven entities in order to discourage lawsuits and make it difficult for judgment creditors to collect. Principles of asset protection include anonymity of ownership, deterrence of lawsuits and creditor action, and exhaustion of an adversary´s determination and resources.

This is our recommended asset protection plan for investors and businesspersons:

  1. establish a Series LLC (Texas or Nevada) to hold investment properties and businesses (the "holding company");
  2. form a separate Texas LLC to act as a "shell" management company (no significant assets) to acquire properties and then transfer them into the holding company; also for transactions with tenants, vendors, contractors, and the public (income passes through to the holding company as consulting fees);
  3. file assumed name certificates (DBAs) for both the holding company and for the management company and utilize these names;
  4. establish checking accounts for the each company under their respective DBAs and have checks, letterhead, cards, etc. printed that way;
  5. transfer any properties held in personal names into individual series of the holding company (Series A, Series B, etc.) using properly-worded warranty deeds;
  6. modify lifestyle by reducing debt on the homestead, personal vehicles, and other exempt items to maximize protections offered by Texas homestead laws
  7. form a living trust for the homestead to avoid probate, and then execute a "pour over" will to transfer other assets to the trust upon your death, thereby eliminating legal hassles for your heirs.

Why establish two LLC´s? The management company deals with tenants, vendors, contractors, and other third parties. It signs leases and contracts. It hires employees and leases equipment. Otherwise, the management company is a no-equity shell, deliberately placed in the public eye as a target for lawsuits. The holding company – where the hard assets are – remains quietly in the background, keeping properties and businesses in separate, insulated series. Income flows through the management company to the holding company. Because the holding company signs no contracts and has no public dealings (i.e., no legal "privity" with anyone), it is very difficult to successfully sue. For a more detailed summary of our three levels of asset protection, click here.

ABOUT OUR FIRM

David J. Willis is a real estate and asset protection lawyer with 30 years´ experience in transactions and litigation. He is board certified in both residential and commercial real estate law by the Texas Board of Legal Specialization and is A-V rated. He is also a licensed real estate broker. As a result of this experience, he is uniquely qualified to design an asset protection program that works. "Elaborate entity structures are useless" he observes "unless they can withstand the scrutiny of a judge or jury." Our recommended asset protection plan, which includes a Texas Series LLC or Nevada Series LLC, is ideally positioned to do this.

 
WHAT IS A TEXAS SERIES LLC?

The Texas Series LLC and the Nevada Series LLC allow different properties and businesses to be held in separate "series" or compartments, each insulated from the liabilities of the other – a significant advantage over a traditional LLC in which all assets of the company are available to satisfy any judgment. The series feature reduces the need to form multiple LLCs for different properties and projects. An individual series may own real estate, borrow money, manage property, or operate a business in its own name. In effect, each series is an independently operated and managed "sub-company."

What if you are just beginning an investment program? A series company is still an excellent choice because individual series do not have to be implemented right away. They can be added progressively as the company acquires properties – with no additional state filing required. After forming a Texas Series LLC or Nevada Series LLC, investment property held in a personal name should be moved into the company by means of general or special warranty deed without delay (See Deeding Properties, above).

 
COMPANY DOCUMENTS

When your new Texas LLC is approved by the Texas Secretary of State, we will ship you a professionally printed company book (black vinyl or optional leatherette) with official seal, custom membership certificates, detailed company agreement designed by us to maximize asset protection, customized minutes of the organizational meeting, and more as the client may require. These documents assure a high level of asset protection and compare favorably to asset protection documents produced by lawyers anywhere in the United States.

ANONYMITY

Anonymity is a key element of asset protection. Your personal name should never appear on any deeds, leases, or contracts, and a tenant should never write a check to an individual member of the company. There is an old rule that people tend to sue whomever they write their checks to, so make sure that is never you personally. Dealings with the public should be conducted solely in the name of your Texas Series LLC or (preferably) its management company.

It should never be easy for anyone to discover the true ownership of your assets or where those assets are located. This office can assist with enhancing your anonymity. For an annual $250 fee, we are available to act as registered agent for the company, receiving official mail and service of process if the company is sued. We also offer a unique trust-based LLC filing ("anonymity company") that does not disclose your personal name in the formation documents. Fees are higher. Go to Fees & Policies.

RELOCATING TO TEXAS

Even if you do not now reside permanently in Texas, you may still be able to designate your homestead here and protect its full value against lawsuits and judgments. Purchase Texas property, obtain a Texas drivers license, register to vote . . . and declare yourself a Texan who is entitled to homestead protections. There is no waiting period. Clients who are moving to Texas and acquiring property here will be required to sign a buyer´s representation agreement, since the commission split is an important part of our compensation. Brokerage commissions may be split with associated brokers.

LAND TRUSTS AND LIVING TRUSTS

A living trust (also called an inter vivos trust) for the homestead is an integral part of our overall program. Although not specifically designed for asset protection, living trusts are effective planning devices that achieve both a measure of anonymity (they are not registered entities) and avoid probate. Trusts are not just for the rich. This office is as enthusiastic about living trusts as we are about the Texas Series LLC.

ONLINE CONSULTATIONS AND SERVICES

Email us your inquiry about the Texas Series LLC. We will respond promptly with preliminary comments (not a full consultation). Many options are then available, including those listed below. Note that all fees are priced for online delivery. Office appointments incur significantly higher cost.

Asset Protection Review. This is a good starting point if you are uncertain about whether or not to form a Texas or Nevada LLC. It includes a comprehensive analysis of your circumstances and goals with recommendations for action. It is conducted online, supplemented by phone and fax. The fee is $250 and is applied to the fee for a Texas LLC or trust.

Formation of a Texas Series LLC or Nevada LLC. Asset protection planning is included in our $750 fee for a traditional LLC or Series LLC (available in both Texas and Nevada) as are follow-up questions after the company is established. The fee for an "anonymity company" (our unique proprietary process utilizing a trust in the initial filing) is $1,500 plus costs. Costs at this time are $435 for Texas, $290 for Nevada, which includes expedited handling by the Secretary of State.

Deeding Properties into your Texas LLC or Trust. This is essential to implement your asset protection plan. Specially crafted Texas deeds for this purpose are $175 plus recording fees. A reduction is available if three or more properties are involved.

Formation of a Living Trust. Fees are $550 not including the deed into the trust ($175). You should also consider executing a "pour over" will ($250 per person) that will transfer your assets to the trust upon your death.

SALES OF EXISTING COMPANIES

We have a limited inventory of established (but never used) companies that have been custom-designed with unique anonymity and asset protection features that include first-class company documentation, upgraded leatherette books, EIN´s, assumed name certificates, and bank accounts. These premium LLC´s represent our best work and are ready for immediate overnight shipment to the client. Fees are substantially higher. Go to shelf companies.

FEES AND COSTS

We strive to be completely transparent in the area of fees and costs. Go to Fees & Policies for details on services, fees, and policies that apply to all clients in place of written fee agreements.

We invite you to compare our fees with any board-certified attorney with comparable experience. However, this is not a discount law office. Our basic rules: (1) We offer no free consultations or services of any kind; (2) we do negotiate fees; (3) we are unable to download and read your documents, create a file for you, prepare or ship documents, or provide any substantial legal advice or services until payment is made; and (4) although we honor the confidentiality of all inquiries, no attorney-client relationship is created until we accept a case and fees are paid.

BEWARE OF DISCOUNT INTERNET SERVICES

All LLC´s and trusts are not created equal. We use sophisticated, customized documents designed by this office to achieve maximum asset protection – no "standard forms." There is simply no comparison to discount internet services that claim to provide "legal services at your specific direction." These provide only the most basic of documents, barely above the level of junk, often not state-specific, and with no guidance from an attorney. New clients often ask us to upgrade or replace the documents they previously obtained from such internet services. It is often more expensive to do so than if the documents had been done correctly in the first place.

ETHICS, CONFIDENTIALITY, AND STANDARDS OF PERFORMANCE

This office subscribes to The Texas Lawyer’s Creed and the Code of Ethics of the National Association of Realtors. Adherence to the highest ethical and performance standards is an essential part of our firm philosophy. We are in good standing with the State Bar of Texas, The Texas Board of Legal Specialization, and the Texas Real Estate Commission (Verify these credentials). We are occasionally asked for a client list. This is never provided. We would no more reveal the identity of our clients than would a Swiss bank. The anonymity of our clients is of paramount concern to us.

AREAS SERVED

Because of our unique blend of services and online capability, this firm has clients from all parts of Texas and around the world – Europe, Asia, and Latin America. Our principal office is in the Houston area although we often visit Dallas. David J. Willis is a real estate attorney serving Houston, The Woodlands, Dallas, Fort Worth, Austin, San Antonio, El Paso and all Texas cities. He is also a Texas asset protection attorney for anyone who owns real estate in Texas and is considering forming a Texas Series LLC as part of an asset protection plan.