Legal Question in Business Law in New Jersey

Re: LLC and Corporations

This situation is not uncommon where the businesses are related in concept. Many franchise operations have similarly-named businesses in different states for example.

You have understood one of the problems that can result. An outsider may confuse the business identities and this may cause unnecessary grief. It does not make one business liable for the debts of the other.

If there is no good reason for keeping the same name, then it is good policy to change one or the other.

See also: http://info.corbettlaw.net/lawguru.htm

Re: LLC and Corporations

This is possible whether or not you are doing business in the same State as the corporation or vice versa, due to the confusion of similarity of names. I suggest that the LLC promptly file an Amendment to its formation document changing its name. If any claim arises before this is done, the exposure is there, especially as we live in a very litigous society, and many attorneys representing claimants will draw anyone and everyone into a suit, hoping to recover against someone.