If I’m looking to purchase a business with 2 locations, should I have a corporation set up for each physical location or should I have one as the holding corporation and set up 2 DBAs?

They will be in close proximity to each other.

Asked on June 11, 2014 under Business Law, New York

Answers:

Shawn Jackson / The Jackson Law Firm, P.C.

Answered 6 years ago | Contributor

On the assumption that they are identical businesses with the same liability exposures, the first thought would be to have them under one corporation or LLC. The second thought is to remind you that "legal entities" are designed to be "fire walls" between assets and liability exposures...so, under the first thought as one company, if you get sued for what one of the employees does at one business, you could lose everything in the corporation...whereas, if you have two corporations, you bascially set up a "fire wall" between the businesses and to protect other assets.

Shawn Jackson California Business Development Attorney


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