Legal Question in Business Law in New York

If I have a business operating in two states, and I want to form an LLC, should I organize a domestic LLC in each? Or a domestic LLC in one and a foreign LLC in the other? Does it matter? Thanks.

Asked on 10/17/13, 7:56 pm

3 Answers from Attorneys

Osvaldo F. Torres Torres Law, P.A.

If the business is the same in both states, it would make more sense and it would be more efficient to do the latter. Otherwise you would have to file 2 separate tax returns, etc.

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Answered on 10/17/13, 10:25 pm
Steve Brodsky Esq. CheapNewYorkLLC.com

I agree. It makes no sense to form two LLCs for the same business. http://www.CheapNewYorkLLC.com

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Answered on 10/18/13, 6:19 am
Roman Fichman Esq. Law Practice of Roman Fichman Esq.

The answer to your question depends on how the two businesses are set up. Whether they share vendors or customers, whether capital is allocated to each independently, how is the accounting for the two done, whether there are different equity partners in each, what is the risk profile as well as many other factors.

As you can see the facts and circumstances need to be reviewed to render an opinion. Such review is generally not a costly one and my office can assist you.

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

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Answered on 10/23/13, 11:18 am


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