Legal Question in Business Law in New Jersey

I am currently the owner of an LLC that provides nutrition counseling services. Come 10/1 we are moving into a new retail space in which we are contracting with a whole lot of other health professionals (no employees), most of which are paying rent to us. We want to change the name under which we operate as to encompass all the new services we offer (our original one only mentions nutrition). I had the idea of keeping our original LLC in which medical insurance companies will still reimburse us under and our rent checks from our tenants will go to, and then create a new LLC which will be the new name of our wellness center, that will have no income or expenses billed to it. The new name is "Be Well: Morristown". Eventually, we want to have a second location of "Be Well: Caldwell".

Can someone tell me if I am going about this the right way? Does being the owner of 3 LLC's even make any sense (I know it is not cheap to file taxes for LLC's). Any help in this matter would be greatly appreciated.


Asked on 8/14/12, 6:47 am

2 Answers from Attorneys

Barry Gartenberg Barry F. Gartenberg LLC

As H.L. Mencken said, �For every problem there is a solution that is simple, neat and wrong.� I represent clients with regard to issues and good questions such as the ones you raised. However, I need to have more information to properly advise you. Even simple facts you have not shared could completely change my answer. Please feel free to contact me to discuss your questions and visit my website, www.bgartenberg.com, or call me if you�d like to learn more about me or my practice. Thank you.

IRS CIRCULAR 230 DISCLOSURE: As required by U.S. Treasury Regulations governing tax practice, you are hereby advised that written advice contained herein (if any) was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

With best wishes,

Barry F. Gartenberg, Esq.

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Answered on 8/14/12, 7:27 am
Walter LeVine Walter D. LeVine, Esq.

More facts are needed for a proper answer, such as: Are you a solo owner or do you have partners? This goes to the issue of duplication of tax preparation costs since you might or might not require separate returns for multiple LLCs. Plus there are non-tax reasons you might want to keep each location separate, such as liability insurance protections. I have many LLC clients, some of which operate through a single LLC and some through multiple LLCs. Further exploration of your needs and a review of choices and their rationale is required for you to make an educated decision. Contact me directly if you want to discuss the choices.

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Answered on 8/14/12, 9:21 am


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