Pine Bush, NY asked in Business Formation and Business Law for New York

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.

2 Lawyer Answers
Gregory Byrnes
Gregory Byrnes
Answered
  • New York, NY
  • Licensed in New York

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.

Michael David Siegel
Michael David Siegel
Answered
  • New York, NY
  • Licensed in New York

A: You should start fresh. You would need to file the LLC in NY as a registered foreign corporation, and that filing is as much as the new LLC. If you are getting a new EIN, you definitely need a new entity.

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.