QUESTION
I have 2 different companies but want to use the same merchant credit card account, what is the best way to do this
Asked on Jun 06th, 2017 on Business Law - California
More details to this question:
I am the strawman for 2 companies, one does IT work out of India. The other does part supplies in the USA but they work out of India. The parts are bought and sold in the USA. They use my services to run their Merchant Accounts and Banking through. I currently live in California but would like to have these companies set up in Texas or New Mexico to limit our Tax liabilities. There will probably be more companies set up like this in the future. What is the best way to structure this or options to think about?
1 ANSWER
I'm not sure whwt you mean by "straw man" in this context, but I am pretty sure that using the same merchant credit card account is a bad idea.
By "companies", I assume you mean independent legal entities, like corporations or llcs, and I assume that one of the reasons that you set up, or will set up, independent legal entities is to avoid personal liability for the entities' obligations. You would jeopardize this liability shield if you didn't run the companies as independent entities, but rather commingled their operations. This could very well lead to a "piercing of the corporate veil" making one company liable for the other's obligations, and could even lead to you personally being liable for the entities' obligations.
Answered on Jun 07th, 2017 at 12:55 PM