Alphonse v. Arch Bay Holdings, LLC, 548 F. App`x 979 (5th Cir. 2013) is a prime example of the uncertainties surrounding the novelty of the LLC series and national law disputes. Arch Bay Holdings, LLC was an LLC series founded under delaware law. One of his unique series, Series 2010B, had a loan that secures the home of Alphonse in Louisiana. Alphonse sued Arch Bay under the Louisiana Unfair Practices Act after his home was sold in a forced sale. A lower court dismissed the Alphonses case, in part because Delaware law controlled Arch Bay`s liability, and under Delaware Law, Series 2010B was the real interested party, not master LLC, Arch Bay. However, the Fifth Court of Appeal quashed the dismissal. Each series is bound by contracts with The Legend LLC and the other Series LLC, but each works individually. For customers who like this approach but want to cut the length of the name, we recommend “123 Main Street, a protected series of XYZ Holdings, LLC.” This reduces the information that LLC identifies as a limited liability company in the Texas series, but offers a name agreement that helps a real estate investor easily identify assets in a given series. When a real estate investor chooses this special name agreement, we strongly recommend that the term “a limited liability company in Texas” be added to the end of the protected series name on all warranty securities to inform the world that the series is a protected series of a limited liability company in Texas.
In the case of a protected series of a Texas Series LLC series, the resolution of a protected series is different from a tradition LLC or series LLC (Master LLC), because a protected series is not considered an actual connection unit by the Texas Secretary of State or the Texas Comptroller of Public Accounts. There is no operational or legal difference between an open bank account for a traditional LLC and an open bank account for the entity in general on behalf of an LLC series. You seem to look like yourself. Individual series may also have their own accounts. The legal basis is set out in code 1. 101.601 (20) (b) of companies: “A series established in accordance with point (a) may carry out all transactions, purposes or activities, whether lucrative or not, which is not prohibited by Article 2.003.” Those who are reluctant to the idea of multiple series may choose to create a traditional LLC, which remains useful for a single investment or commercial purpose. A traditional LLC is also a management company. In the previous example, you can place any property in a separate protected row. If the same tree falls on the property #3, the visitor to Property #3 could only complain and get retrieved from the protected series that owns the property #3 if all the correct formalities and registration requirements for the Master LLC and each protected series are met.