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Maverick
Maverick, Attorney
Category: Business Law
Satisfied Customers: 6386
Experience:  20 years of professional experience
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I currently have a company that is an S Corp registered in

Customer Question

I currently have a company that is an S Corp registered in the state of Pennsylvania that produces bio-diesel fuel. I would like to also add to this company new agricultural product lines and change the name of the company to reflect both products we will offer. What is the best way for me to proceed, IE. just a company name change or incorporate a new LLC under the existing corporation, or just start a new corporation. Or is there a better way you can suggest? Also how is the quickest way and safest way to ensure the legal entity meets the Pennsylvania requirements.
Submitted: 1 year ago.
Category: Business Law
Expert:  Maverick replied 1 year ago.

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1. The quickest way to do this would simply be to apply for a name change. If you are concerned that there is a different risk / return level associated with the agricultural line, then you may want to open that one under a different S corp altogether. For example, if the bio-diesel fuel company is really lucrative and built up cash reserves that you do not want to be at risk if something goes south with the new line, then open a different S corp for the new line.

2. LLC's are not really needed unless you are going to expand with some partners down the road; but you can do that just as well by issuing stock with from you S corp so long as you are issuing stock to less than 100 shareholders and to non-forerign owners.