Legal Question in Business Law in Wisconsin

Story - Currently have an 8-year old business set up as an LLC. Looking to start up a new venture with a pretty small first year budget.

Question - Should I set up the new venture as another LLC? Should there be a holding company LLC set up that would own the two operating LLCs? Would workers from the first LLC be able to assist in the new venture without comprising the LLC's legal segregation? Would it be better to register a DBA, wait to see how the new venture works out and then start a new LLC if it is successful? Would there be any issues with providing the same benefits to employees for both LLCs? (Specifically health insurance)

Thanks for the help,

Rich


Asked on 8/02/10, 6:33 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Any attorney will say IRS regulations require separate books and records for each business you operate. Depending on the type of business, starting out as a DBA and having adequate liability insurance is a good way to test the waters. Consult with an attorney in your area for specifics.

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

Franchise Attorney

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Answered on 8/07/10, 7:10 am


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