I am in the early planning stage of a series of affiiated businesses. These businesses depend on a secret proprietary process. I (personally) plan to own the process under my own (personal) name in order to protect it from becoming an asset in the corporation, in case of a judgment. I'm thinking of then "leasing" it to a "Master" corp.

I hope to incorporate a "master" business which will retain part (controlling) interest in the other Corps. Example: Acme, Inc. will be the master corp. and will then own controlling stock in Acme, NY, Inc.; Acme, Atlanta, Inc.; Acme, Miami, inc.; etc.

Is this a feasable plan, or would another be better?

You have several options.

If the process could be subject to litigation, you may want to place the ownership rights into another company that licenses the technology to a holding company, which then sublicenses it to the seperate entities.

The license becomes an asset and unless written carefully could lock that asset if subject to a suit; counter that with the fact that people may not pay for the sublicenses, if the master license is not strong and long term.

You also have to watch out for franchise law issues.

__________________
Paul K. Silverberg, Esq.

Hi Uncle Leon:

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