Q: My husband has an LLC and I have 2 LLCs. We want them under one roof. Should we put them under one corporation?
It just feels right that way.
A:
Combining multiple LLCs under one corporation can offer streamlined management and potential tax benefits, but it also carries risks, such as shared liability among the businesses. Before deciding, it’s wise to consider the distinct nature of each business, the potential for liability exposure, and the financial implications. It's essential to examine the specific goals for consolidation, whether for administrative convenience, tax strategy, or business expansion.
Consulting with a legal professional experienced in corporate structures can provide guidance tailored to your unique situation, ensuring compliance with Illinois law and alignment with both your short-term and long-term objectives. A CPA should also be consulted regarding the tax consequences of such a restructuring. Each business's assets, liabilities, and operations must be carefully evaluated to determine the best structure for your combined business endeavors.
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