Ask a Lawyer -- LLCs

LLC Question 168

LLC Operating Agreement Form Price: $16.99 (free trial)
PLLC Operating Agreement Form Price: $20.99 (free trial)

Question: I have an LLC that is formulated in Washington State and I now live in California. I would like to create another consulting firm based in California basically using the existing company and creating a new image for California. I do not want to loose the credit rating etc. from the WA based LLC, but I do feel I can grow if I use a different name while maintaining my presence in WA. What options do I have? Thank you.

Response: Two thoughts. First, you could merely use a DBA in California. The Washington LLC would be licensed to do business as a foreign LLC in California with a registration of a trade name under which the Washington LLC is to operate in California. This is the simplest route with least level of extra record keeping / reporting. All legal documents of the California divsion would need to be in the name of the Washington LLC. Second thought: form a new LLC in California but have the Washington LLC be the sole member of the new California LLC. An LLC can be a member of a separate California LLC. See California Corporate Code § 17001(ae). This would allow the Washington LLC to borrow any funds necessary for operation of the California LLC and simply transfer the funds to its wholly owned subsidiary.

Submitted: 02/06/2008; Martha, California
Response: 02/08/2008; JJR

Add A Comment

Ask a Lawyer LLC Archives

DISCLAIMER The above is provided for informational purposes only and is NOT to be relied upon as professional advice. The information presented on this site comes without any warranty of correctness and, therefore, should not be relied upon. This service is not a substitute for the advice of a professional. No attorney client relationship is created through use of this site.

MedLawPlus.com, Inc.
St. Louis, MO
Copyright 1999 - 2009 / Patent Pending