Options on subleasing a commercial property with partners

[Aaron Helmholdt]

While exploring rooms for my wife to rent as a spa and salon worker, we found an opportunity to rent a large 2500 square foot retail space that already houses a spa/salon business that is moving. As such, it is already perfectly set up with rooms made for her kind of business. It has given us the idea to go ahead and rent the entire space and then sublease the other available rooms to other salon people looking for rooms to rent to create a secondary side business with some cash flow. However the costs to get going (signage, light renovations,) and the much higher rent is a bigger risk then I want to make. We have 2 family members that want to go in on it to mitigate the risk and help out.

What is the best way to set something like this up? Would creating an LLC with the 3 of us make the most sense to sign the lease with and also to run the business of collecting rents from the subleases? Does anyone have similar experiences or insights?

Thank you!