Louis Massaro explains why you need a separate legal entity when expanding to a new location. Set up a corporation or LLC, fund its bank account directly from personal money, and keep its finances completely separate from your original business. Commingling funds can expose your whole enterprise to lawsuits from the new location.
Number 5 is you want to open a separate entity, open a brand new corporation or a brand new LLC. Talk to your lawyer, talk to your accountant. I'm neither one of those things, but you're going to want to fund that account from your personal account. Put the money there. Okay, then from there, the new entity's bank account, then you can now make all the purchases you need for that business. Okay? You don't want to cross-mingle funds because what happens is, you know, you want to be in a position to protect yourself. Let's just imagine the worst thing happens in that new location. You want to be able to have your legal liability separate from your existing location. Okay? And if you are cross-mingling funds, even though you have separate entities, if there happens to be a big lawsuit or happens to be something that goes down, you know, they could tie back to your original company, and now you put your original company at risk.
