Legal Question in Business Law in New York

Generally speaking, an LLC can own other LLCs.

The benefits depend on the business reason for having separate subsidiaries instead of one company but could include another layer of limited liability and many business efficiencies that can be created with such a structure. Disadvantages could include the additional costs of setting up and running separate companies. However, if there is a good business reason for having multiple subsidiaries then the additional costs would be relatively insignificant.

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I agree that a LLC can have subsidiaries and that it may be appropriate in some instances, but it might also expose all joined entities in any potential liability claims. In such possibilities, separate, unrelated LLCs might be best.

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, The response is limited to the facts presented. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. .