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 Ely Your Own Question
Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102507
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
7286322
Type Your Legal Question Here...
Ely is online now
A new question is answered every 9 seconds

I have two businesses in NJ that provide basically the same

This answer was rated:

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

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

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.

Please note: If I tell you simply what you wish to hear, this would be unfair to you. I need to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

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.
Ely and 9 other Legal Specialists are ready to help you