Legal Question in Business Law in Texas

I plan on establishing an LLC to operate as a holding entity for my smaller businesses (operating entities.) I don't plan on having any of my operating entities as LLC's , but to just channel the liability to the parent holding company. Is this a format that fits best? I don't have enough funds to establish each of my businesses as LLC's thus the reason for the parent LLC. What are the pro's and con's to this format? If I do pursue this format, how do I file the operating entities? Do I file DBA's in the appropriate county? I don't know the legal, financially soluble way to file these operating businesses.


Asked on 1/02/12, 9:46 pm

2 Answers from Attorneys
Dipo Akin-Deko Akin-Deko Professional Services Firm PLLC

The cost of creating a parent LLC is the same cost as turning your current business into an LLC. If you can't turn both into LLC's (or S Corps) then turn your current business into an LLC. You will still be shielded from liability if you operate it correctly.

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Answered on 1/03/12, 3:16 am
David Leon David L. Leon, P.C.

In lieu of a parent LLC and subsidiary LLCs, you may wish to consider a series LLC. This would allow each business (a series) to have separate assets and liabilities from every other series (business) that you own.

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Answered on 1/03/12, 5:45 am


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