Series LLC: the elegant solution
A Series LLC has one master LLC with internal 'series' or 'cells.' Each cell holds one asset and provides its own liability shield, but you only file ONE state annual report. Texas, Delaware, Nevada, Illinois, and ~10 other states recognize this structure. Cost: typically $300 to form the parent, ~$0–$60/yr per state, single tax return (though many CPAs file separate Schedule E's per cell for clarity). This is the right answer for 5–30 rental properties in a recognizing state.
- • TX Series LLC: $300 formation, $0/yr franchise tax for most
- • DE Series LLC: $300 formation, $300/yr franchise
- • NV Series LLC: $425 formation, $350/yr
- • IL Series LLC: $400 formation, $250/yr
When NOT to use a Series LLC
If you hold property in California, New York, Massachusetts, or another non-recognizing state, the series's asset protection is uncertain — that state's courts may pierce through the cells and treat the parent as a single LLC. In those states, separate LLCs (one per property) are the safer choice. Also avoid Series LLC if you plan to refinance frequently: many lenders refuse to lend to a series cell because the underwriting and title insurance gets complicated.
The Wyoming holding company structure
Sophisticated investors layer this: Wyoming holding LLC (anonymous, $60/yr) owns 100% of state-level operating LLCs (one per property's state). The WY parent shields YOUR name from public records — Wyoming doesn't publish members — and the state subs hold the assets. Annual cost is high ($1,500–$3,000+ for a 5-property portfolio) but provides strong asset protection AND privacy. Common for real estate, high-net-worth, and creator businesses with public-figure owners.
Tax treatment is identical across structures
All single-member LLCs are 'disregarded entities' for federal tax — they don't file their own return, just appear on your Schedule C or E. Multi-member LLCs file Form 1065 and issue K-1s. NONE of these structures change your federal tax bill compared to holding the assets in your own name. The only tax differences are state-level (CA $800/yr franchise tax per LLC kills CA multi-entity structures) and the QBI 199A deduction interaction (real estate sometimes qualifies as a qualified trade or business — needs entity setup).
What insurance does instead of (or alongside) entities
A $1–$2M umbrella policy costs $300–$600/yr and covers most rental landlord liability scenarios in full. For 1–3 properties, the umbrella alone often outperforms a multi-LLC structure on cost-adjusted basis. Above 4 properties, layer both: umbrella for first-dollar coverage, entity structure for catastrophic claims that exceed the policy limit. Insurance + entity is always better than either alone.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
Will a Series LLC actually hold up in court?
Within recognizing states with proper formation, operating agreements per cell, and separate bank accounts per cell: yes, courts have respected the internal liability shield. Outside recognizing states: legal scholarship and case law is thin. The conservative position is to assume cross-state lawsuits may pierce.
Can I convert separate LLCs into a Series LLC later?
Yes, via a state-level conversion or merger. Costs $500–$2,000 in legal and state fees. Triggers a basis/cost-basis review and potentially a Form 8832 entity classification election. Worth it once you hit 5+ assets.
Does the Corporate Transparency Act / FinCEN BOI affect this?
Yes — every LLC and series cell must file Beneficial Ownership Information with FinCEN within 30 days of formation. As of 2025 court rulings the rule is in flux for domestic entities, but assume compliance is required for all your entities. Fines for non-filing are $500/day.
What about S-Corp election?
An LLC can elect S-Corp tax treatment via Form 2553. Useful when net profit exceeds ~$60k and you can pay yourself a 'reasonable salary' for self-employment tax savings. NOT recommended for rental real estate (rental income isn't subject to SE tax anyway). Common for creator/agency businesses.
Can my mortgage stay with the property if I transfer to an LLC?
Most residential mortgages have a 'due-on-sale' clause triggered by transfer. In practice, lenders rarely call loans transferred to a single-member LLC owned by the same person (the Garn-St Germain Act protects intra-family transfers). Commercial loans usually allow LLC transfer with notice.
Do I need a separate bank account per LLC / cell?
Yes — comingling funds is the #1 way courts pierce LLC veils. Each entity needs its own checking account, its own credit card, its own bookkeeping, and its own EIN (for multi-member or any entity electing S/C-Corp status; single-member LLCs can use owner's SSN).
What's the simplest structure for a creator with 3 income streams?
Usually one S-Corp-elected LLC that handles all creator activities, plus separate sole-proprietor Schedule C if you have a side-business with very different liability profile (e.g., physical product sales). Multi-entity adds cost without much benefit until revenue per stream is $200k+.
How much does forming a Series LLC actually cost?
State filing: $50–$425. Operating agreement (DIY template): $0; attorney-drafted: $1,500–$5,000. Registered agent: $99–$300/yr. EIN: free. First-year all-in: typically $200–$1,000 DIY, $2,000–$6,000 with attorney.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last reviewed
June 2026. We re-check every figure on the platform on a rolling quarterly cycle.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.