Can I use funds from one LLC to purchase assets in a new LLC? What are the implications?

Schedule an appointment with an experienced business lawyer before you use assets of an LLC which was not properly organized for failure to publish. Try not to mix assets from one LLC with another LLC. You will be defeating the purpose of having separate LLCs which is to shield assets from other LLCs. Separate question of using LLCs in different states.

I agree with attorney Lutzky in that you should not mix assets from different LLC’s. From asset protection perspective, an LLC is a very good legal tool for managing and holding investment real estate and for insulating the risk this kind of assets generate. However, an LLC will not protect personal or other assets (bank and brokerage accounts, other investment real estate, your primary residence, etc.). A plaintiff may always try to pierce the corporate veil by holding you personally liable by theories as for example negligence or gross negligence. Depending on the total net worth to protect, you may consider combing your LLC’s with a legal tool that is specifically designed for asset protection purposes: a Family Limited Partnership filed in a state with strong charging order rules as AZ. You should also consider getting an extensive insurance coverage. I advise you to schedule a consultation with an attorney that has proven expertise in asset protection planning.