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I have a corporate entity that operates a courier business.

The only asset of the...
I have a corporate entity that operates a courier business. The only asset of the firm is trucks and contracts with customers. I want to form a separate corporate entity or LLC and transfer all truck titles to this new corporation B so as to limit liability on the first, existing, company A. Can creditors of company A go after assets of company B under the assertion that company B is an "alger ego"?
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Answered in 5 minutes by:
5/15/2017
Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 38,831
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Your plan is a good idea. No, if you treat both entities as separate they will be protected from each other's claims.

You will want a written agreement and monthly payments form the courier service to the truck owning entity for the use of the trucks. That will protect alter ego claims.

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Customer reply replied 1 year ago
Thanks for your direct response. Will it make a difference whether company B is a corporation or LLC?

I prefer LLCs.

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Customer reply replied 1 year ago
do I, thus the question. Finally, I am located in CA. Do you foresee any issues with the above given the complexity of the state laws in this wonderful state?

I am not a CA attorney, but your business purpose is straightforward and not uncommon. So, I think you have the broad strokes down. For the details and documentation retain a CA business attorney and it should be fine.

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Customer reply replied 1 year ago
ok. thanks

You are very welcome.

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Loren

Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 38,831
Experience: 30 years experience representing clients .
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The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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