Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.
What Are the Pros and Cons of Using Your LLC to Be a Member of Another LLC?
I am the sole owner of an LLC. I am entering another business venture -- a 50/50 ownership -- with a friend and we are forming a second LLC in an industry related to my first LLC. I am thinking about making my personal LLC the member of the joint LLC, instead of myself. What would be the advantages and disadvantages? I have heard there are advantages like another layer of legal protection, reducing the number of tax entities, etc, but I'd like to know more.