Legal Question in Business Law in New York

Re: Parent company and sub companies..good idea?

Mr. Silber is correct; both concepts work but you need an attorney to go over all the facts and structure this to maximize simplicity and protection of assets and minimize tax liability. Feel free to contact us; you may benefit from having some of your companies based in another state, but again it depends on what they do and how.

Re: Parent company and sub companies..good idea?

This area of law is our specialty, however, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.

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Re: Parent company and sub companies..good idea?

You are correct in your understanding. However, I would strongly recommend that you consult with both an accountant and a business attorney prior to choosing an entity. Given the size of the undertaking you will want to factor in issues such as publication costs (required for LLCs) along with tax implications (for example if you are doing business in NYC the city does not recognize the S-election for tax purposes). Without more information I am unable to advise you on which of the entities would be the best fit for your situation. They each have their own benefits and drawbacks. My firm has extensive experience in this area of law. Please feel free to contact my office if we can be of assistance in this matter.

Re: Parent company and sub companies..good idea?

The protection you seek can be obtained by both a LLC or S-Corp, but to answer more fully, additional facts, such as other shareholders, are required. If you go the LLC route, remember that the publication rules have changed (see my website). I'd urge you to consult with an attorney or accountant before you decide how you will go. Please let me know if you need further assistance.