I`m sorry if this is a bit simplistic, but I want to make sure you understand. Businesses (such as corporations or LLCs) are separate entities and the purpose of having one is to provide a "corporate shield" to protect you personally. It`s very important that you maintain the separation by keeping separate bank accounts, by documenting payouts, etc. Otherwise, if you`re ever sued, the corporate shield can be pierced and you can become liable. Having two companies is similar.
If the new company is going to function as a subsidiary of the current company then the answers are a little different, but the general principle is that you have to treat the two entities as separate. It sometimes helps to think of them as two separate people. For example, Company A, let`s call it Bob, employs 10 people. Company B, call it Fred, employs no people. If you want the employees of Bob to work for Fred, then Fred needs to contract with Bob and pay Bob for the service. Whether that payment is in cash or in stock, that`s a matter for you and your attorney to decide.
I hope this answers your question.
Deena Burgess, Esq.
Offering Affordable Legal Solutions for Small Businesses
Any opinions are offered without knowledge of the specific law of your jurisdiction and with only the limited information provided in your post. No advice given here should be reasonably relied upon by you or any third party without consulting an attorney who is aware of all of the facts and law surrounding your situation. Any advice given here is not intended to creat an attorney-client relationship in any way.
Deena B. Burgess, Esq.
Offering Affordable Legal Solutions to Online Businesses
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