Question
I am looking to set up a 2nd LLC as an Operating Company for my Production Company, which itself is a single member LLC in Pennsylvania.
In terms structuring the business, I could either personally file the Operating Company under my own name/address (like I did for the 1st LLC), - or, could have the 1st LLC (Holding company) file the paper work, and set it up as a parent company.
It sounds to me like setting it up as a completely separate entity (not going the parent rout), then leasing the Holding Companies assets (Equipment/Intellectual Property) would limit the liability completely when I'm on the road making productions. But maybe I'm missing something?
What are the impactions of setting it up in these two scenarios, both tax and liability wise? What's sounds like a better way to structure the LLC's for my needs? Answers and following conversations much appreciated.
Answer
One thing you could research is other jurisdictions to set up a single member LLC. If you pick a state that specifically has charging order protection for LLC's (i.e. Wyoming affords this protection whereas Florida does not). you would probably be better protected liability-wise. Happy to have a call to discuss specifics.
