Q: Can I use the same LLC information to purchase multiple businesses in different states?
A: A limited liability company (or LLC) is a business entity. Yes, it can own other businesses in multiple states.
A:
Yes, you could use the same LLC to acquire businesses in several states, but there are many reasons why you would not want to do that. In order to use the same LLC to run businesses in several states, you would likely have to register it as a foreign LLC in each state in which a business was acquired. Since you have to pay a filing and renewal fee anyway, you could have separate entities to make sales and earnings reports easier to prepare. From a liability perspective, why have one LLC subject to claims against each individual business, which could jeopardize separate business for the liabilities of an unrelated business. There are many tax related reasons to have separate entities, which are numerous and involved that go beyond the scope of this forum.
Bottom line - - yes, you could do it, but there are many considerations against doing so.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
