Post: Converting Sole Propriter to LLC Seeking Advise

Posted by Paul N on 9/26/09

What is the name of your state (only U.S. law)? NJ

I have an accounting/business law question, not sure if you
can answer if it for me or know the answer off the top of
your head.

Scenario: I'm at the point where I want to turn my IT
Consulting Business, (currently just a dba) to an LLC to add
an extra level of protection between my personal property
and business assets.

At the same time I'm changing the focus of my company to 4
different markets:

- Health care (electronic medical records for medical
professionals)
- Small/Medium Business Technology Services
- Advertising (Digital Signage)
- Gov./Educational Technology Needs

(I currently have perspective VPs who will oversee the
operation of 3 of the 4 enterprises)

Now if each of these businesses takes off in their separate
directions there is potential for large sums of money all
around. For that reason, I’m starting to lean in the
direction of forming separate LLC for each market (changing
the business name for branding purposes as needed). Unless,
you know a better way that I can structure the companies?

Part II:

Should I form it in NJ or one of these "business friendly
states" such as Delaware or Nevada? How much of an extra
benefit is it? Will the extra fees that I’d then need to pay
to NJ for registering as a foreign business be worth it?
(Not to mention subscribing with one of the registration
holding companies)

Posts on this thread, including this one

Converting Sole Propriter to LLC Seeking Advise, 9/26/09, by Paul N.