I currently have an LLC but am starting a new business. Is there any benefit to having two LLCs? My current business may not survice the recession.
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I currently have an LLC but am starting a new business. Is there any benefit to having two LLCs? My current business may not survice the recession.
There may be a possibility of bankruptcy. Can you offer any advice in this situation? Biz 1 : A healthcare recruiting firm that offers permanent placement services in the healthcare sector. In business for 6 years. Biz 2 : A website that will offer social networking, job postings and other online service; also in the healthcare sector. I have one partner 5%. Business two is currently just an expense (development) but will hopefully generate revenue through job postings and advertising with the intent to sell within 5-10 years.
Asked on July 1, 2009 under Business Law
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
The basic advantage of an LLC is that only the money and assets you put into the LLC are at risk if the business goes under. So if you start a second LLC for the new business, it would be unaffected, for the most part, if the recruiting firm closes down. It also makes sense to have a separate entity, if you have someone else with an interest in only one of the two businesses.
For advice you can act on, based on all of the facts of your situation and the two businesses, please talk to an attorney in your area. One place to find a lawyer is our website, http://attorneypages.com
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
The basic advantage of an LLC is that only the money and assets you put into the LLC are at risk if the business goes under. So if you start a second LLC for the new business, it would be unaffected, for the most part, if the recruiting firm closes down. It also makes sense to have a separate entity, if you have someone else with an interest in only one of the two businesses.
For advice you can act on, based on all of the facts of your situation and the two businesses, please talk to an attorney in your area. One place to find a lawyer is our website, http://attorneypages.com
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