Legal Question in Business Law in North Carolina

This transaction does not sound illegal, in terms of violating any particular LLC rule. Of course, such a transfer might violate a breach of duty (e.g. fiduciary duty) to the owners (shareholders or members) of the LLC. But, assuming that the owners of the first LLC consent to this transfer, then there is not a problem, and the transaction is not illegal. Also note that there might be tax consequences to the 2nd LLC, as this might be considered "income." You may of course want to consult with an attorney in your area to explore this issue further.

The other attorney is right on point. Unless this co-mingling is authorized by the operating agreements of both LLC's, it is not proper. Unless, of course, it's just a loan that carries interest and is properly secured. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney