Friday, March 16, 2012

Do you have to maintain a separate bank account for each series in a series LLC?

We always recommend that you treat each series as a separate entity. As such, you should maintain separate bank accounts for each series. However, the Texas Business Organizations Code does not specifically require separate bank accounts. It does require that records maintained for a particular series account for the assets associated with that series separately from the other assets of the parent LLC or any other series. If the records of a series are maintained in a manner so that the assets of the series can be reasonably identified by specific listing, category, type, quantity, or computational or allocational formula or procedure, including a percentage or share of any assets, or by any other method in which the identity of the assets can be objectively determined, the records are considered to satisfy the requirements Texas Business Organizations Code.