How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TJ, Esq. Your Own Question
TJ, Esq.
TJ, Esq., Attorney
Category: Business Law
Satisfied Customers: 11779
Experience:  JD, MBA
9373668
Type Your Business Law Question Here...
TJ, Esq. is online now
A new question is answered every 9 seconds

I have four DBAs. One is a small restaurant. The other three

Resolved Question:

I have four DBAs. One is a small restaurant. The other three are inter-related businesses (IT Consulting, Medical Billing, Toner Cartridge Supply) as most of my customers are small medical clinics. I would like to protect all of my businesses and my personal assets by creating a proper corporate shield. Each dba makes less than $65k per year. I would like to form an LLC "Master Company" and run each of these as divisions underneath a single LLC. Is this wise? Or should I have seperate LLCs for each one or one for the restuarant and one for the others? What type of professional (lawyer) should I direct these types of questions to?
Submitted: 4 years ago.
Category: Business Law
Expert:  TJ, Esq. replied 4 years ago.
Hello and thank you for allowing me the opportunity to assist you.

Please note that for legal reasons my answers are only intended to be general/educational information rather than specific legal advice. If you need specific legal advice, then you must consult with a local attorney in your jurisdiction.

A corporation or LLC will protect your assets in that any of the LLC's liabilities will not go beyond the LLC. In other words, if your LLC has a debt that it cannot pay, then the creditor can only go after the LLC and not after the LLC's owner. The LLC's assets are still at risk, of course. If you have one LLC with divisions, then you run the risk that, for example, the profits from the IT Consulting division will be taken to satisfy a debt from the Medical Billing division. The reason is that the assets and debts are actually owned and owed by the single LLC. If each division is an LLC, then the parent LLC would not be liable for the other LLC's debts. Of course, the downside of having so many LLCs is that it will be costlier to create and manage from an accounting perspective. So, there are pros and cons for each. But from a liability perspective, it is safest to have separate LLCs.

As for the type of lawyer to use, there are lawyers that specialize in business entities and creating them. You can easily find a local lawyer that specializes in that are by using the state bar's referral service, found HERE.

Have I satisfactorily addressed your concerns? If not, then feel free to let me know, as I will be happy to clarify my answer or help with your follow-up questions. In the meantime, please remember to click the green accept button so that I will receive credit and compensation for my time (doing so does not end our discussion). Positive feedback is always appreciated as well. Thank you and good luck!
TJ, Esq. and 3 other Business Law Specialists are ready to help you

Related Business Law Questions