Legal Question in Business Law in New York

Can a parent LLC own other subsidiaries that are LLCs? and is there any benefit or disadvantage of this?


Asked on 8/30/16, 9:55 pm

2 Answers from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

Generally speaking, an LLC can own other LLCs.

The benefits depend on the business reason for having separate subsidiaries instead of one company but could include another layer of limited liability and many business efficiencies that can be created with such a structure. Disadvantages could include the additional costs of setting up and running separate companies. However, if there is a good business reason for having multiple subsidiaries then the additional costs would be relatively insignificant.

For further assistance contact me directly.

Roman R. Fichman, Esq.

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

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Answered on 8/31/16, 10:06 am
Walter LeVine Walter D. LeVine, Esq.

I agree that a LLC can have subsidiaries and that it may be appropriate in some instances, but it might also expose all joined entities in any potential liability claims. In such possibilities, separate, unrelated LLCs might be best.

Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions, The response is limited to the facts presented. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. .

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Answered on 8/31/16, 10:48 am


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