If my husband and I are starting 2 businesses, what is the best legal form to set them up?
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If my husband and I are starting 2 businesses, what is the best legal form to set them up?
One will be a deli and the other will be buying foreclosed houses, flipping them, and selling them. I have been researching LLCs and subsidiary LLCs. Which is the better option: set up 2 separate LLCs, one for the Deli and the other real estate or set up a parent LLC and have 2 subsidiary LLCs which will be the deli and real estate? Can the parent LLC be a “general” category and the subsidiaries be specific? Since it’s just my husband and I for tax purposes, should the LLC be set up as a single-member (husband’s name only) or form the LLC as a multi-member (husband and I each a separate member)?
Asked on November 2, 2013 under Business Law, Georgia
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Based upon what you have written about, I would set up two separate limited liability companies as opposed to corporations. Limited liability companies are easier to set up, easier to dissolve and cost less than a corporation to establish. The members should be joint, not single. A business attorney in your locality to assist you with the above can be found on attorneypages.com.
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