Do I Need An Llc To Start An Online Business – You have great ideas for new businesses. You’re ready to incorporate to protect yourself and your personal assets, and you’ve decided it’s time to take the next step and form an LLC holding company for your various endeavors. Then the questions arise: What kind of business activity can I carry out with LLC? How many different businesses can I operate under one LLC? Should I install DBAs? Do I need to create a separate LLC for each project? Will the MMC series work for me, or should I stick with a few traditional MMCs? Nowadays, it is widely known that Delaware is the gold standard for forming an LLC, LP or Corporation. The Delaware LLC is the most popular type of entity for most startup entrepreneurs. As a result, people often wonder if they can manage multiple LLCs under one LLC holding company. Structuring Multiple Businesses Under One Umbrella LLC For example, let’s say a business owner has a trucking business incorporated as an LLC, but after some time he may want to offer real estate services as well. These are two completely different types of businesses, so it raises the question of whether an owner can provide both services under one LLC. Part of the focus, of course, is wanting to avoid the additional costs of maintaining another LLC. The answer is yes – it is possible and allowed to operate more than one enterprise under one LLC. Many entrepreneurs who choose to do this use what is called a “Fictitious Name Statement” or “DBA” (also known as “Doing Business”) to operate an additional business under a different name. However, just because it is permissible and possible to operate several different types of businesses under one company (LLC or corporation) does not mean you should, just because there may be disadvantages. For example, if a lawsuit is filed against any of the businesses, the assets of the others may be at risk. The result is that you put yourself at a higher risk of liability. In other words, if one part of the LLC (the business) were to be liable, the entire LLC could be liable as well. As the old saying goes, “don’t put all your eggs in one basket.” Instead, many people choose to file a new LLC for each of their startup ventures. It isolates risk by separating the debts and liabilities of each business. Think of the individual entities as helping to build a large brick wall between each LLC. Of course, there are additional maintenance fees, but it can be worth it to protect your business and provide the convenience of individual LLCs. will allow. What about a Series LLC? Some people look into a low-cost LLC when they want to operate several different businesses, which is very attractive because there is only one annual Franchise Tax payment to the State of Delaware and one annual Registered Agent fee. However, the structure of this business entity is relatively new and unproven, so many obstacles often arise when working with a number of LLCs. Many service providers, banks, lawyers, accountants and other businesses are still unfamiliar with the series concept. It often takes time to explain the concept of the series and get the approval of the required documents, for example, from the bank’s credit team. It is generally considered safer and more prudent for people to keep their business enterprises completely separate from each other by forming an LLC for each aspect of the business; essentially, what you are doing is creating a Delaware LLC as a holding company and other individual LLCs within it, but separate from it. Separate LLCs for Individual Businesses As of today, the tried and tested practice of creating separate LLCs for each type of business is still the most recommended strategy by tax professionals, attorneys, and business advisors worldwide. . This means that for each sector of the business, each product line, each service provided, each real estate held, clients will often consider creating separate, traditional LLCs. It thereby ensures that the assets, liabilities and liabilities of each LLC are completely cut off and protected from each other in the event of any possible litigation. When creating multiple MMCs, it can be extremely useful to develop a plan hierarchy that matches the relationships of the respective MMCs. For example, people usually create multiple LLCs for real estate development. This framework often consists of a parent LLC at the top of the hierarchy—let’s call it ABC Holding Company, LLC. People then create several sibling LLCs, usually one for each actual real estate property—let’s call them ABC Real Estate 1, LLC; ABC Real Estate 2, LLC; and ABC Real Estate 3, LLC. Each LLC may own, manage, and be liable for a property; thus, while all LLCs share the same holding company—ABC Holding Company, LLC—and have similar structures, ownership interests, assets, and liabilities, they are insulated and shielded from each other to protect the properties and resources of each individual. LLC. It is also considered a smart, strategic way to protect your personal assets from LLCs. If you have more information or have any questions about starting your own companies, please contact us by phone (800-345-2677), Skype (), email or live chat. One of our knowledgeable business startup experts will be happy to assist you. Next: How to create and use a DBA
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm, and even if the author is an attorney or tax professional, nothing in this article constitutes legal or tax advice. This article provides general comments and analysis on the topic discussed. We strongly recommend that you consult an attorney or tax professional to obtain legal or tax guidance appropriate to your particular circumstances. Any action taken or not taken pursuant to this article is at your own risk. If the article refers to or links to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations as to the content or accuracy of such source. The views expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
Do I Need An Llc To Start An Online Business
I have an LLC and wanted to start another business unrelated to my first business. I believe I can apply for DBA and keep this job under the first one. However, I was thinking of keeping them separate by doing sole proprietorship and then getting an EIN for the second business. How do I get a “dba” trade name for a sole proprietorship? It seems the only way to register a dba trade name is to register it with another entity or llc.
Operate Multiple Businesses Under One Llc Holding Company
Thank you for reading our blog and for your question. Generally, you will file separate LLCs for each separate business so you don’t have all your eggs in one basket. A representative from our office will be in touch to provide you with additional information and answer any questions you may have.
Hi I am a landlord with four properties. By chance you can advise which LLC is recommended. I will also be buying property in a neighboring state, should I form another LLC in that state? Thanks Stephanie
Thank you for reading our blog and for your question. We will be happy to assist you with your question and will be in touch shortly to assist you further.
Hi, Thanks a lot for the article. I plan to start a laundry business as an LLC and hope to have multiple owners. However, I also have a DBA, I can use the DBA as an LLC for banking purposes, but each potential laundromat has its own LLC separate from the DBA. Or do I have to have completely different accounts for each business under a sole proprietorship LLC?
A Complete Guide To Understanding Eins For Llcs
Thank you for reading our blog and for your question. One of our representatives will be happy to contact you to explain all this in detail.
Hello, my name is Precious. Thanks for the article, I really learned it. I currently have a business that offers services but want to build others that deal in products, would you suggest that I register a trademark instead of all my businesses, or should I open an LLC for all of them with my current business as the parent company?
We will be happy to contact you to discuss your enquiries. One of our representatives will be in touch shortly.
Hello I found your site very informative. My question is, I have started an llc that is in the process of becoming a non-profit corporation. A good friend wants to set up a for-profit business completely unrelated to my original LLC, but has asked me to set up a for-profit company under a new LLC. Should I do original as parent llc Inc with subsidiaries or not
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