Organizing multiple LLCs



Christian Member
Staff member
Full Member
I'm looking at spinning up another lab for a different type of client base.

Trying to figure out how to arrange things for best benefit and most protection.

Should they be kept totally and completely separate? Labor expenditures will cross between lab entities, but there will be separate addresses.

So I'm thinking
One LLC that pays and provides the labor to both.
Both labs as its own LLC and they contract with the labor LLC for labor

This keeps all the property and finances separated and if one goes down the others are able to continue as standalone entities by paying labor directly.

Any better ideas?

Still noodling this. Thinking right now it's at least 6 months out at the earliest.

There are reasons for having two separate 'things', for branding issues alone it's required as they will have different clientele and business models.
Jason D

Jason D

Well-Known Member
Full Member
Ok you know me....
Devils advocate why make 2 companies unless you have maximized one and need the second to address a second market?

The grass is always greener ... in the 90s virtually every high-end lab tried to make a discount crown and virtually every discount lab tried to make a high-end department - I only know of one that actually succeeded.

If you are looking for low hanging fruit in another niche you have to be sure you have exhausted your current niche, otherwise abandon one for the other.

The only reason I can think of to have separate entities today is if you want to offer offshore and domestic and dont want brand dilution.

So, what’s the motivation for separate entities? Can’t give the best advice without understanding the question better...
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