Legal Question in Business Law in Colorado

We have 12 LLCs and one LLC as a management company. We are looking to do more back office support (i.e. Payroll), but are unsure if this will affect the 12 LLCs in the event there is a lawsuit at one location (or LLC). The funds will be paid to the employees of each LLC out of our management company. We are trying to protect each entity as much as possible. Thanks!


Asked on 3/04/14, 11:55 am

1 Answer from Attorneys

Robert Murillo Pivotal Legal Ltd.

A business attorney would need to know much more about the business, the assets, the investors, the record-keeping and other information to give you the best strategy to protect your assets. As a matter of practice, in addition to have clear written operating agreements for each LLC, maintaining formalities, and other procedures, depending on the business, it is usually preferable that the respective costs of doing business are paid out of each separate entity. As I said, the best strategy really depends and requires more facts. If there are multiple investors, having clear operating and related agreements is key.

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Answered on 3/04/14, 12:21 pm


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