San Antonio, TX asked in Business Formation, Business Law and Contracts for Texas

Q: A friend has 2 companies under her LLC. I want to start a third business under her LLC. What would it take?

Is it a good idea to add a third? Does it matter if I my company is for companionship for the elderly and the friend companies are more toward selling product?

1 Lawyer Answer
Abraham C. Bloomenstiel
PREMIUM
Abraham C. Bloomenstiel
Answered
  • Plano, TX
  • Licensed in Texas

A: Thanks for your question. Unfortunately, this is a difficult question to answer without more information. It would help me to know the type of LLC your friend has and what ownership or relationship your friend's LLC or other two companies under it will have with the new business that you want to start.

Speaking very generally (and making a lot of assumptions), if your friend has an LLC that operates several businesses under it, then her LLC is likely classed as a "series LLC." This is a special business form in which a parent LLC owns or operates smaller sub-LLC's. If that is the case, then starting a new LLC under the parent LLC should be relatively easy. However, your sub-LLC cannot be wholly independent of the parent LLC. It will have to have some legal relationship with the parent LLC. For example, the parent LLC and you could me members or managers of the new sub-LLC.

I would suggest that you discuss what you want to set up with a business formation & planning attorney who can help you to make the best decision for your needs. There may be other options that would serve you better in the long-term. Good luck and much success to you!

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.