Texas LLC: Liability Protection, Tax Implications and FAQs

What is an LLC in Texas?

• A Limited Liability Company (LLC) is a flexible and popular business entity in Texas.
• It provides limited liability protection, separating your personal assets from your business or property-related liabilities.
• LLCs are commonly used for rental properties, real estate investments, small businesses, and even by licensed real estate agents in Texas.

Why should I form an LLC for my rental or investment property in Texas?

• Protects your personal assets from lawsuits and debts related to the property.
• Allows for pass-through taxation, avoiding double taxation.
• Helps with estate planning and smooth transfer of ownership.
• Can enhance privacy by limiting personal information in public records.
• Many investors prefer Texas for its no state income tax environment.

Can Texas Realtors use an LLC for their real estate business?

• Yes, licensed real estate agents in Texas can operate through an LLC.
• The LLC can be registered with TREC (Texas Real Estate Commission) as a licensed business entity.
• Benefits include:
• Collecting commissions directly through the LLC.
• Easier expense deductions.
• Professional image and business structure.
• Personal liability protection.

What are the main types of deeds used when transferring property into an LLC?

• General Warranty Deed – Offers the highest level of protection.
• Special Warranty Deed – Limited warranty, often used in commercial transactions.

These are the two most commonly used when transferring into an LLC. To see how that process works see our Step-by-step guide on our website.

What is a Series LLC in Texas?

• Texas allows the formation of a Series LLC, which can hold multiple properties under separate “series” within the same LLC.
• This helps investors:
• Separate liability between properties.
• Avoid forming multiple standalone LLCs.
• Manage multiple rental or investment properties more efficiently.

Do I need an attorney to form an LLC in Texas?

• Technically, no — but working with an attorney ensures:
• Correct formation with the Texas Secretary of State.
• A legally sound Operating Agreement.
• Proper documentation for real estate transfers.
• Compliance with TREC if you’re a realtor.
• Protection against costly mistakes that DIY services often miss.

How can AWA Law Firm help with my Texas LLC?

At AWA Law Firm, we have helped hundreds of Texas investors, landlords, and real estate professionals:

• Form Texas LLCs the right way.
• Draft strong operating agreements tailored to real estate and business needs.
• Handle property deed transfers into LLCs.
• Integrate LLCs into estate plans for long-term asset protection.

We offer personalized service, not just generic forms, so you can have confidence that your investment or business is protected.

Ready to form your Texas LLC or transfer your property?

Let our experienced Texas legal team guide you. We have helped hundreds of individuals set up LLC's across our great State.

Contact us today:


📞 713-581-1150
🌐 www.awalawfirm.com
📧 legalteam@awalawfirm.com