I have a client that owns an LLC with her brother. They have the opportunity to purchase half of another business and form a partnership with the buyer of the other half. However, it is my understanding that an LLC cannot own part of a partnership? Is that true and if so, how can they do this?
It will likely be in your client's best interest to create a new LLC for the second business. That way, each business is individually protected if something were to happen to either one.
Your client should explore her options with her CPA.
Yes, an LLC can be a partner in most States but there are some that require a natural person.
As Nicole notes, it would be wise for you to require that, rather than a partnership, the partner entity form into an LLC or C Corp.
José A. Rivera, JD
President & CEO
Rivera, Sierra & Company, Inc.
jrivera@riverasierra.com
NicoleD | Former Moderator | 11/30/2010 - 7:40 am
riverasierra | Window Shopper | 12/1/2010 - 7:36 pm
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