Advice Needed: Umbrella LLC

[jmellone]

All,
Thank you in advance for any and all possible responses. I am looking to shift my efforts in to a more professional light and register an umbrella LLC and follow up by registering all other entities as falling under said LLC.

I was wondering the best/cheapest/most effective way to do this.

Basically: I am involved in a number of efforts (wearable products, edible products and later g&s to be developed/expanded upon). I would like to create an LLC which can envelope all efforts such that my liability is limited.

I know from coursework that Maryland is notorious as a registering goto.

If anyone has gone about doing this/could offer some guidance I would be endlessly in debt.

Thank you,
Jason

[GlobalWealth]

I consult weekly with clients asking nearly the same question. Actually just got off the phone with a client with the same issue. As a holding company, you will need a master LLC domiciled in NV, DE, or WY. These are your best choices. I can help you with this if you want. Let me know.

[GlobalWealth]

By the way, best is never the cheapest, and cheapest is never the best. Usually cheapest becomes the most expensive in the long run.

[rdc]

Jason,

The concept of setting up multiple LLCs for you businesses is not uncommon. In particular, it occurs frequently in fields like real estate.

One option, the one you mentioned, is to assign ownership of multiple LLCs to a single one. Another option (probably more common) is to simply operate multiple LLCs in parallel. There are distinct liability, operative, and tax implications to both scenarios, and a series of documents, assignments, etc, will be required to effectuate this structure.

Regardless, there is a substantial level of compliance associated with either situation that is required to maintain functional limited liability status, and you should consult with an attorney about this.

Lastly, another more cutting-edge option that law firms are beginning to pick up on is the concept of the "Series LLC". It is a relatively young form, but it allows for multiple LLCs to be operated with a single registration (and subsequent filing requirements, etc.), making administration less of a headache.

I hope this helps some.

[gkimmer]

I am running the risk of sounding like a downer...but I will say this none the less....

Please note on the backend you are potentially creating a for yourself by setting up so many entities. Think about taxation, administration, accounting, etc etc for these things. I know abstinence from liability is very important, but make sure it's worth it to do this.