Q: Should I form my own LLC or Operate under my Father?
My Dad is in MI, and is the owner of a trucking LLC. The authority though is out of Service. Since he already has the LLC and he is open to me brokering freight under the business name, I figured it would eliminate a step for me forming a new LLC. Doing some research on that however is creating questions. Do you think this is a wise thing to do? I'm in NY and my Dad really wont be doing any brokering, just me. Would it be wise to just form my own LLC for legal reasons, or for things as simple as receiving mail? Is it worth changing the LLC to a partnership? I know I will still have to get my broker authority but would I have to get a new EIN number? Any feedback on this would be greatly appreciated.
A: If you want to operate a foreign (out of state) LLC in New York you need to domesticate (register) it in New York. Many of the same requirements apply to registering foreign LLC's in New York as they do to forming new ones. Whether it is wise to take over his LLC is dependent on too many factors that could be addressed here.
If you change the LLC to a partnership you will first need a partner. Depending on the partnership formation you chose someone or entity or everyone will not have limited liability protection (this is the general partner). LLC's and corporations provide limited liability to the owners while limited partnerships provide protection to only the limited partners. General partnerships provide no limited liability protection.
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