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Multiple LLC's with parent and subsidiaries

Asked by: Kilic Beg - 18 March, 2013 I have 3 day care center under one LLC. My lawyer suggested to break it into 3 LLC to have better protection. The problem would be that I would need to do 3 payroll's and have 3 different bills for the benefitts I provide. Is it possible to have a parent LLC where all the employee's are assigned to the parent and child LLC for each center? Are there any disadvantages for this? Should the parent company be LLC as well or should I go with S-Corp?
Answered by: Robert Kowalski - 18 March, 2013 Kilic,

First of all I agree with your attorney that each of your day cares should be organized as a separate LLC, to limit it's liability to itself.

Second, you could have a forth LLC registered for the purpose of providing workforce to those other 3 LLCs (this fourth LLC doesn't even need to be the owner of the other 3 LLCs). There are many companies that specialize in being the official employer of the employees of their client companies, for the purpose of centralizing payroll and other employee related formalities and services.

Which gives me an idea - maybe you want to look for a company like that (I know of one here in New York called Ambrose Employer Group) and have your problem resolved this way.


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