Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Is forming an LLC the best way to go?

Asked by: Stephen - 8 November, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 For multiple businesses (ex. Franks Pub; Franks Auto Repair; Franks Diner) to operate under a single umbrella company name (ex. Franks Enterprises)... is forming an LLC the best way to go?
Answered by: Robert Kowalski - 9 November, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Stephen,

Technically you could form an umbrella LLC and run all businesses under this company.

However, since the purpose of a Limited Liability Company is to separate the liability of the business from its owners, you should also consider the scenario where you separate the liability of each business from the other businesses.

This is what you could do: form an umbrella LLC, and then as each business matures separate it into its own LLC, owned by the umbrella LLC. Alternatively, you could use the umbrella LLC as a holding company (just to own the other LLCs), have each business separated into its own LLC and owned by the umbrella LLC, and also have a special LLC set aside for all the experimental businesses (also owned by umbrella LLC). This way you make sure all liability is well separated.

The only disadvantage of this scenario is the fact that you need to maintain all those LLCs, which could be somewhat costly, depending on the state of formation.

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment