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
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!

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