In Texas, how do I file for one LLC ( series LLC ) to have a parent company and child company?
Or do I need to file for two separate LLC’s - LLC#1 for parent company and LLC#2 for operating company?
The goal is to keep the child company for only one year and then transfer all its assets to the parent company. What is the best process to form the Parent Company and Child Company?
There is a lot going on with your question and my advice would be to not attempt to do this without the help from a business attorney familiar with mergers and its tax implications.
To answer your question you may have a series LLC or create a parent and subsidiary scheme. Since we don't know the purpose of the structure we cannot advise on which one is best.
Either way when you collapse the other entity you have to make sure it doesn't trigger a taxable event.
In my humble, but educated opinion, some of your comments are concerning as your choice of words don’t match the functionality of a series LLC. Not saying anything bad about the post, you may have the concepts correct.
Series LLC’s are fairly new in Texas. If set-up properly for the right type of businesses, they are beneficial to the owner(s). But, without proper filings, agreements, bank account set-up, etc., any scrutiny on a series LLC could result in the entire business being viewed, legally, as simply one LLC with no cross-cell protection. There are also additional risks based on location of assets, location of sales, etc.
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