Each series can have a separate bank account, but it is not required.

Separate bank accounts are often recommended for two main reasons: (1) separate bank accounts will better insulate the cash of one series from the creditors of the others, and (2) separate bank accounts make compliance (or non-compliance) with the statutory record-keeping requirements more evident. To better understand this, we first need to understand the record-keeping requirements described in the Texas Business Organizations Code (TBOC):

According to TBOC Sec. 101.602(b), the limited liability characteristics of a particular series “applies only to the extent the records maintained for that particular series account for the assets associated with that series separately from the other assets of the [Series LLC] or any other series.”

According to TBOC Sec. 101.603(b), records must be maintained “in a manner so that the assets of the series can be reasonably identified by specific listing, category, type, quantity, or computational or allocational formula or procedure, including a percentage or share of any assets, or by any other method in which the identity of the assets can be objectively determined, the records are considered to satisfy the [record-keeping requirements].”

If you’d like to have individual bank accounts for each series, you can either (1) open multiple LLC accounts (using the LLC’s EIN and Certificate of Formation) and designate each account for a specific series; or (2) obtain an EIN for each series and open the account in the name of series.