I currently have an LLC but am starting a new business. Is there any benefit to having two LLCs? My current business may not survice the recession.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

I currently have an LLC but am starting a new business. Is there any benefit to having two LLCs? My current business may not survice the recession.

There may be a possibility of bankruptcy. Can you offer any advice in this situation? Biz 1 : A healthcare recruiting firm that offers permanent placement services in the healthcare sector. In business for 6 years. Biz 2 : A website that will offer social networking, job postings and other online service; also in the healthcare sector. I have one partner 5%. Business two is currently just an expense (development) but will hopefully generate revenue through job postings and advertising with the intent to sell within 5-10 years.

Asked on July 1, 2009 under Business Law

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 15 years ago | Contributor

The basic advantage of an LLC is that only the money and assets you put into the LLC are at risk if the business goes under.  So if you start a second LLC for the new business, it would be unaffected, for the most part, if the recruiting firm closes down.  It also makes sense to have a separate entity, if you have someone else with an interest in only one of the two businesses.

For advice you can act on, based on all of the facts of your situation and the two businesses, please talk to an attorney in your area.  One place to find a lawyer is our website, http://attorneypages.com

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 15 years ago | Contributor

The basic advantage of an LLC is that only the money and assets you put into the LLC are at risk if the business goes under.  So if you start a second LLC for the new business, it would be unaffected, for the most part, if the recruiting firm closes down.  It also makes sense to have a separate entity, if you have someone else with an interest in only one of the two businesses.

For advice you can act on, based on all of the facts of your situation and the two businesses, please talk to an attorney in your area.  One place to find a lawyer is our website, http://attorneypages.com


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption