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We have an existing LLC that operates as an independent contractor providing services at multiple locations in the local area. We would like to set up another entity that provides the same service, but 1) out of a new fixed location, 2) under a different name, and 3) with employees.

We don't think separating liability between the two is a major concern since the existing LLC has no significant assets to protect. Additionally, the existing LLC's independent contracting activities may be reduced and/or phased out if the new entity gets going. However, services provided under both require malpractice insurance.

Would this best be done by modifying the existing LLC in some way (e.g., somehow turning it into a series LLC)? Is it better to set up a new LLC? Or is there a more simple process using the "doing business as" approach?

We appreciate any insight!

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1 Answer

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The simplest way would be for the new entity to be "a division of" the existing LLC, which is essentially the same as Doing Business As.

If you will really be phases out the existing LLC for this new one, then you can change the name of your existing LLC to the new one. That assumes that they are in the same state.

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Thank you! Just to clarify, what needs to be done to establish the new entity? Modify the existing LLC? – Ryan Oct 26 '11 at 12:46
One other question: While we are not necessarily concerned with separating the liability of the two entities, we do want to protect the name of the new entity (as well as the old one). The DBA designation doesn't seem to provide this protection, since site says that DBA is sometimes used when the desired named is not registrable. I read this as meaning it is already taken by someone else. – Ryan Oct 26 '11 at 13:07
@Ryan. Not necessarily. DBA's are just ways to make the name easier to remember. Lots of Sole-Proprietor's do it so it's easy for customers to remember. – Jarie Bolander Oct 28 '11 at 1:42

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