QUESTION
What are the legal ramifications behind including a small farm within the same llc as a restaurant, in South Carolina?
Asked on Mar 30th, 2018 on Business Law - South Carolina
More details to this question:
I would like to open a restaurant and also a very small farm, whose main duty will be supplying the restaurant, with surplus sold at farmer's markets and possibly to other restaurants directly depending on usage and growth. I am wondering if it is a smarter move to create two separate businesses where one is buying from the other or one business with two locations, so sales of produce at said markets and gross sales from the restaurant would go to the same account.
1 ANSWER
If both businesses are owned by the same llc, each would be responsible for the other's obligations. Thus, if the restaurant becomes liable in a food poisoning case, the assets of the farm could be used to satisfy that obligation, because the assets of both the farm and restaurant are both the assets of the llc. Although it is a little more expensive to set up and operate 2 separate llc's, if properly done, it will insulate the assets of each business from the creditors of the other.
Answered on Apr 02nd, 2018 at 2:52 PM