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Complicated business structure issue: My wife and I are both…

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Complicated business structure issue:My wife...
Complicated business structure issue:My wife and I are both doctors. We own several rental house and our primary home.I set up a holding company LLC. It collects the rent from the house that we personally own (I set up rental agreements between holding Co and the tenant, and I have a notarized agreement between me and the holding co to assume all liability of the rental places).The holding co owns several sub LLCs (my wife's medical practice, my medical practice, and my laundromat). EACH entity is a LLC in florida, with their own EINs, and own bank accounts.I was getting a labor attorney to vet a letter of engagement (offer letter) for a salesman. The salesman is to my hired by my medical practice LLC.In that conversation, he (the labor attorney) said that IF the employee were to sue the medical practice, he would name the holding company, its subsidiaries and my wife and I as defendants, regardless of structure and claim "Fraudulent Transfer" of funds and urge veil piercing in order to collect the most.My practice and auxiliary sources of income are growing. The structure outlined, was vetted by two CPAs and LLM attorney.Apparently, I was wrong about risk mitigation? Or was I? What is the best structure? If I own each LLC personally, wouldn't that be the same as the holding company owning subsidiaries???Thank you.Raja
Submitted: 2 years ago.Category: Business Law
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Answered in 1 hour by:
2/22/2016
Business Lawyer: Asad Rahman, Attorney replied 2 years ago
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2,436
Experience: Practicing Attorney with 10 years experience
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I would agree with the labor attorney. You should keep all real estate property issues separate from the medical practice issue. The parent holding company can have interests in the home that is leased, but the medical practice, etc. should all be in different corporate structures. A person who tries to sue will try to name as many of the entities in order to get to any asset they can. I'm happy to discuss in more detail via phone if you like but there are additional charges. The concept is called piercing the corporate veil.

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Customer reply replied 2 years ago
does my current structure that I outlined make sense? there's a parent holding company, with subsidiaries. Is the liability really limited at the subsidiary level?
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

No it does not. The same holding company should not own the medical practice and the real estate or laundromats. Each business should be kept separately.

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Asad Rahman
Asad Rahman
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Category: Business Law
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