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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102507
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I have two businesses in NJ that provide basically the same

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I have two businesses in NJ that provide basically the same type of services, however, they need to remain separate.
We presently have full insurance coverage on both companies and pay for full insurance coverage on both companies, which is extremely costly.
I was wondering if there is a way, and would it be more cost effective, to open a company to just own the trucks where both companies operating now, could lease the trucks rather than own them. Thank you, Suzanne

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Sure - of course there is a way. Whether or not this would be considered cost effective is very subjective.

It is very easy to open either a SUBSIDIARY corporate entity controlled by by the PARENT company. Or, an entire corporate entity ALL TOGETHER, controlled by the owner of the original company. Either way, that new company can then won the trucks and they would be leased out to the parent/original company.

The thing is, this may get very complicated very fast, especially if stock and operating agreements are involved. And to make things worse, the insurance company will likely SEE THROUGH the matter and still charge the same amount, deciding formally or informally that the second company is simply an alter ego of the first company. You do not have to agree, but they do not have to provide coverage.

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Customer: replied 11 months ago.
I agree. I have heard of companies doing this, however, they are very large companies, not small family businesses. Insurance coverage would be the major problem. Thank you! Suzanne
You are very welcome. Good luck, and please don't forget to RATE my answer in one of top three faces and then SUBMIT that rating – it is the only way I get credit for my time with you – or, please use the REPLY or SEND button to keep on chatting – I want you to be satisfied.
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