Legal Question in Business Law in New York

Company structure depends on a variety of factors that are not present in your question. This is something that should be discussed in person with both an attorney and an accountant.

Mike.

I concur with my colleague. In addition, such a decision would depend on the nature of the business, the intent of the current owner(s) to maintain control, liability considerations, the investment source, the growth trajectory, any state specific licensing requirements etc.

Feel free to contact my office if you would like to discuss this matter in further detail.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

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As a Franchise Attorney I agree with the other attorney answers and only add the following. Your father in-law should also consider franchising as a strategy to open not only the second, but potentially many other locations. Consult with a good business or franchise attorney for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

If your wife is ultimately going to take full ownership of the entire company , I would consider looking into establishing the company as a MWBE (Minority Women Owned Business Entity). I don't know the business that your wife's Dad is in but based on the products or services he currently provides, there may be government and corporate contracts available to her that he wouldn't be able to bid on.

The bottom line is that she's in the best of all possible worlds. Although the business would need to be certified (which would mean that her Dad would need to transfer a controlling interest in the business to her -- usually 51% or more) and she would have to show that she owns, manages and controls the business, it may open up lines of business and opportunities that would be unavailable to the company otherwise.

It's worth exploring in my opinion and in some cases, there are government and corporate contracts that are put out for bidding that require the participation of a minority or woman owned business if one is available. If your wife/Father-in-law's company is the only company in that position, then they will obviously have a strong opportunity to win the bid and ultimately, begin growing new lines of business.

I have consulted on sourcing issues for years with leading investment banks and telecommunications companies and you would be surprised how much money is allocated to minority and woman owned businesses that is left untouched every single year. I don't know if that direction works for you but if your wife is going to take ownership of the business at some point anyway, why not capture revenue anywhere you can find it?

At any rate, I hope this advice helps. I'm based in mid town Manhattan so I know that there's a great deal of information available for woman owned businesses in New York State. There's a ton of support out there for women who own businesses and I would encourage your wife to take advantage of as much of it as she possibly can.

Cheers,

Christopher