Why You Need a Business Entity
If you own a business, rental property, or any asset that could generate liability, operating in your personal name is one of the most expensive mistakes you can make. Without a properly structured entity, a single lawsuit — even a frivolous one — can reach every asset you own: your home, your bank accounts, your retirement funds, and everything else.
A properly formed business entity creates a legal wall between your personal assets and your business activities. The right structure depends on your goals: liability protection, tax optimization, privacy, or all three.
The most common mistake we see: business owners who formed their LLC online, never created an operating agreement, commingled funds, and now have zero protection. A formation certificate alone doesn't protect you — it's just the first step.
Which Entity Is Right for You?
Every situation is different, but here's a practical overview of the most common structures and what they're best suited for:
| Feature | LLC | Series LLC | S-Corp | C-Corp |
|---|---|---|---|---|
| Liability Protection | ✓ | ✓✓ | ✓ | ✓ |
| Asset Isolation | ✗ | ✓ | ✗ | ✗ |
| Pass-Through Taxation | ✓ | ✓ | ✓ | ✗ |
| Self-Employment Tax Savings | ✗ | ✗ | ✓ | ~ |
| Privacy / Anonymity | ~ | ✓ | ✗ | ✗ |
| Multiple Properties | 1 per LLC | Unlimited | Not ideal | Not ideal |
| Best For | Small business, single asset | Real estate investors, multiple assets | Active businesses with $60K+ net income | Venture-funded startups |
Our Formation Services
🏢 Standard LLC
The workhorse of small business. Ideal for a single business, side hustle, or individual rental property.
- Certificate of Formation filed with TX SOS
- Custom Operating Agreement
- EIN (Tax ID) obtained from IRS
- Registered Agent service (first year)
- Banking resolution
🏛️ Texas Series LLC
Multiple assets, one structure. Each series is legally separate — a lawsuit at one property can't reach the others.
- Master LLC formation with Series provisions
- Individual Series supplements
- Series-specific Operating Agreements
- EIN for Master + guidance on Series EINs
- Registered Agent service (first year)
📊 S-Corporation Election
For active businesses earning $60,000+ annually. Reduces self-employment taxes through salary/distribution splits.
- LLC formation (if needed)
- IRS Form 2553 (S-Corp election)
- Reasonable compensation analysis
- Payroll setup guidance
- Operating Agreement with S-Corp provisions
🏗️ Corporation (C-Corp)
For startups seeking outside investment, or businesses that need a corporate structure for contractual reasons.
- Articles of Incorporation filed with TX SOS
- Corporate Bylaws
- Stock certificates & ledger
- EIN obtained from IRS
- Initial Board resolutions
The Texas Series LLC Advantage
Prior to 2009, if you owned five rental properties and wanted each one protected separately, you needed five separate LLCs — five formations, five annual filings, five registered agents, potentially five tax returns. It was expensive and complicated.
The Texas Series LLC changed everything. A single "Master" LLC can create unlimited series — each one a legally distinct entity with its own assets, its own bank account, and no liability for other series. A slip-and-fall at Property A in Series A cannot reach Property B in Series B. They're legally separate.
This is why the Series LLC has become the standard structure for Texas real estate investors. One formation, one annual filing, one registered agent — but complete isolation between assets.
Important: Not all states recognize Series LLCs. If you hold property in multiple states, we can help determine the right combination of entities. Texas, Delaware, Nevada, Illinois, and several other states recognize the structure — but each has different rules.
🔒 The Ghost LLC™ — Our Premium Solution
For clients who want the ultimate combination of privacy, asset protection, and estate planning, the Ghost LLC takes the Series LLC concept further by wrapping it inside an anonymous trust.
- Your name appears nowhere in public records
- Each property isolated in its own series
- Probate avoidance — immediate transfer at death
- Tax neutral — no change to your tax situation
Powered by our proprietary FlexTrust LLC™ structure. Over 180 formed.
Learn About the Ghost LLC™Our Process
Free Consultation
We discuss your situation, assets, and goals. No obligation, no pressure. We'll recommend the right entity type — or tell you that you don't need one.
Entity Selection & Strategy
Based on your situation, we determine the optimal structure — standard LLC, Series LLC, S-Corp election, Ghost LLC, or a combination. We explain the tax implications and ongoing requirements.
Formation & Documentation
We handle everything: Secretary of State filing, Operating Agreement or Bylaws, EIN application, registered agent setup, and banking documentation. You sign where we tell you to sign.
Asset Transfer & Implementation
For real estate, we coordinate deed transfers into the entity. For businesses, we help transition operations. We make sure your structure actually works — not just on paper.
Ongoing Support
Questions about adding a new property? Need another series? Want to add a partner? We're a phone call away. Our clients aren't transactions — they're relationships.
Common Mistakes We Fix
At least half of the clients who come to us already have an LLC — they just have one that isn't doing its job. The most common problems we see:
- No Operating Agreement. Without one, Texas default rules apply — and they probably don't match what you intended. Courts have pierced the veil of LLCs that lack Operating Agreements.
- Commingled funds. Using your LLC bank account for personal expenses (or vice versa) destroys your liability protection. The whole point of the entity is separation.
- Multiple properties in one LLC. A standard LLC with five properties means all five are at risk from a single lawsuit. A Series LLC solves this.
- Your name on everything. If the deed, the LLC registration, and the registered agent all show your name, you have zero privacy. Anyone can connect every asset to you in 60 seconds.
- Wrong entity type. An LLC taxed as a partnership when it should be an S-Corp. A C-Corp when an LLC would save thousands. Getting this wrong costs real money every year.
If any of these sound familiar, it's not too late to fix it. We restructure and clean up existing entities regularly.
Let's Find the Right Structure for You
Free consultation — we'll review your situation and recommend the optimal entity structure. No obligation, no sales pitch.
Book a Free CallOr call 512-464-1110 · Email david@360networth.com
Copyright © 2003–2025 360NetWorth, Inc. We are not attorneys and do not provide legal advice. We recommend consulting with qualified legal and tax professionals. We have a network of CPAs, probate attorneys, and entity formation specialists at our disposal.