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  1. #1
    Misfit
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    Hey Everyone,

    I have a hypothetical question: would it be possible for an S-type corporation and a limited liability company (LLC) to start a small hosting company together with each owning 50% of the company? Do you know if any forms would need to be filed? I'm thinking no, since it would be easy for each company just to say they fully own the company. Thanks for any help...

  2. #2
    ********* Addict jaiem's Avatar
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    Hi Justin.

    I'm not a lawyer but I don't see why an INC and an LLC can't have a joint venture.

    However, depending which side your own you might want to make sure your form of business gives you the protect you think you have. Just in case of problems later.
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  3. #3
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    Hypothetically speaking....

    Yes, a corp. and a llc can begin a business together. However it would be incorrect to say that either "fully owned" the business.

    Both corps. and llcs are recognized as "business entities" with similar rights as individuals. Thus both could just start a business (defaulting as a partnership), each could be equal share holders in a new corp., or each could be partners in a new llc.

    As with each new combination you (and the other company) should think about how to legally protect the inc. and llc that already exist by asking what new form this business will take. (partnership, inc., llc, llp....)
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  4. #4
    Misfit
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    Alright, thanks!

  5. #5
    exit();
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    I believe that you have to fill out extra forms for any employees.

    Or, if you want to join two companies together, what would be involved?

  6. #6
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    mkaufman,

    I don't understand your question? Employees wouldn't have anything to do with the company decision to enter a new partnership, llc, or inc.
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  7. #7
    exit();
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    Okay..

    Lets say this happens.

    Company1, Inc.

    wants to join Company2, LLC.

    What would be involved?

  8. #8
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    Oh! OK,

    It all depends on the new type of company co1 and co2 want to form. If they want to form a new third inc they would have articles of incorporation drawn up, both companies signing as "incorporators."

    llc: co1 and co2 would file paperwork with the appropriate secretary of state notifying him of the new formation of a new llc.

    Nothing would HAVE to be done for both companies to form a partnership, although both would probably want to have a legal partnership agreement drawn up specifying what belongs to whom.

    Notice in all of these examples the companies are only acting as would any person wanting to form that type of a business with any other person. In the eyes of the law these business forms are "people." Likewise, the original businesses continue to exist. i.e. co1 and co2 still would exist in the same form as before the new agreement. In addition a new THIRD business would also exist.... make sense?

    One other way, but more complicated would be if co1 (the inc.) and co2 (llc) wanted to merge. (For the most part is is only symantics which org. is claiming that they are merging with the other.) In this case the form of the merger would (most probably) take the form of exchanging stock in the inc. for an ownership interest in the llc. To actually do this can get legally complicated as usually it would require a vote of the shareholders, offers to buy minority stockholders out, etc.

    (the above ain't legal advice nor might it accurately reflect the laws of any particular jurisdiction.... blah blah blah...)
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