Legal Question in Business Law in New York

The answer ultimately depends, but it is probably more advisable to simply create a fresh entity. Regardless, you will already be spending on legal to draft the appropriate LLC operating agreement and handle all the trademark due diligence, etc. so setting up a new entity will not be adding much to the overall budget and in the event his existing entity has some issues you will obviate that problem.

You should be calling around to some business/IP lawyers now to make sure you are getting the proper guidance.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

A new company should be created for many reasons including:

The fact that the existing company already has history and liabilities and you shouldn't get involved in such potential liabilities that have nothing to do with you, because the company already has a valuation and to sell you a portion of it would be needlessly expensive or otherwise you would have to pay a very high tax if equity is given to you, because it would be difficult to properly separate out the financial affairs of the existing business from the affairs of the new business, because you want you want the ability to potentially hire and bring on investors and partners to an entity that is dedicated to its business and is not a confusing mish-mash of businesses, because new company docs will have to be drafted and if you're paying an attorney to do that you might as well start fresh.

The above are just some of the reasons why you would want to create a brand new entity. I am a startup attorney and most of my practice is dedicated to startups. Please contact me for help in setting up the partnership and the company.

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.