I'm speaking with tax and small business attorneys, but know there are some smart, experienced people in here that might be able to offer some tips. Hoping GlobalWealth may be able to chime in, as he seems to be the expert here...
I have a Single-Member LLC, elected as an S-Corp. I'm moving across the border to another state, and from what I've gathered so far it seems the best option is to dissolve my existing LLC and start a new one. Otherwise I have to register as a foreign corp and end up filing in both states.
One issue with this is that I've built a pretty substantial line of credit. By starting a new business will I have to re-establish and build credit all over again? Or will my history follow me?
The other consideration I have is if I'm going to go through the trouble of forming a new company, I'd like to possibly do it a little differently. Two things come to mind specifically..
Would forming an LLC as a "holding company" of sorts, which in turn own the LLC that actually does business solve these issues? In other words, would an LLC owned by an LLC provide an added level or privacy and personal asset protection.
If so, can an LLC elected as an S-Corp be owned by an LLC?
I have some other business ventures I'd like to pursue within the next 6 months, so having these new businesses owned by the holding LLC may have an advantage as well.
I have a Single-Member LLC, elected as an S-Corp. I'm moving across the border to another state, and from what I've gathered so far it seems the best option is to dissolve my existing LLC and start a new one. Otherwise I have to register as a foreign corp and end up filing in both states.
One issue with this is that I've built a pretty substantial line of credit. By starting a new business will I have to re-establish and build credit all over again? Or will my history follow me?
The other consideration I have is if I'm going to go through the trouble of forming a new company, I'd like to possibly do it a little differently. Two things come to mind specifically..
- Currently I'm very exposed. You can search the state LLC databse online, and my name is right there as the registered agent. Secondly, you can drill down to see I am also the sole member... where my home address is listed (in addition to the business address). While this has yet to be an issue, this frightens me.
- As a Single-Member LLC, I don't believe my personal assets are entirely protected as well as they should be.
Would forming an LLC as a "holding company" of sorts, which in turn own the LLC that actually does business solve these issues? In other words, would an LLC owned by an LLC provide an added level or privacy and personal asset protection.
If so, can an LLC elected as an S-Corp be owned by an LLC?
I have some other business ventures I'd like to pursue within the next 6 months, so having these new businesses owned by the holding LLC may have an advantage as well.
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