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 Maverick Your Own Question
Maverick, Attorney
Category: Business Law
Satisfied Customers: 6391
Experience:  20 years of professional experience
Type Your Business Law Question Here...
Maverick is online now
A new question is answered every 9 seconds

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.

Welcome to Just Answer (“JA”)! My name is Maverick. Please note that:

(A) The information we provide is general information. No attorney-client relationship or privilege is formed by communicating with me. If you want legal advice, you must consult with a local attorney in person before acting or deciding not to act based on any information given here;

(B) When I feel that I have provided you with a complete answer, I will ask for you to assign a feedback rating so that JA will compensate me for my time; and

(C) You should not be concerned about any short delays between your questions and my replies. Please know that I answer most questions within the hour if I am signed on. If I am not signed on, then I still make every attempt to respond within 24 hours.

Thank you for taking the time to understand how this site works. By continuing, you confirm that you understand and agree to these terms.

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.

Related Business Law Questions