Incorporation Question – Subsidiaries

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Incorporation Question – Subsidiaries

If I incorporate a business, lets say XYZ LLC. If I want to start companies XYZ Pizza and XYZ Hair Salon, under the same name and tax codes, do I have to refile or create new entities? Almost like Giorgio Armani SpA has several clothing lines under his name. If I want to open businesses in different areas can I just put them under the holding company’s umbrella? Thank you.

Asked on May 31, 2009 under Business Law, New York

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You can keep them all under one umbrella so to speak.  However, for liability purposes, i would make then all separate companies.  If one of the companies is sued god forbid, the other companies cash/assets can be taken to satisfy a judgment.  What is the reason for keeping them under one company?  In any event, you should keep the companies separate.  You can still be in control of them and you will be protecting the companies from exposure.


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