Business Partners forming LLC as a master lease (Sublease)

[James Phan]

Hi There,

I’m hoping this is the right space to seek feedback on a business structure for sub-leasing commercial space.

Myself, and 2 other partners have an interest in leasing warehouse space. At the moment we only need about 3500 sq. ft.

The space we want is 10,000 Sq. ft.

We anticipate growth, since most of our business requires dry storage.

Three of us just started separate business, so this warehouse space is too large for our current needs.

Subleasing the remaining space is the plan, until we grow into the space.

We plan to form a separate LLC (3 member) to be on the master lease to strengthen our financial stance and mediate risk for each of us.

Does this look like the correct way to go about this, given the circumstances?