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Possible to have multiple businesses under an LLC?

Discussion in 'Business & Tax Advice' started by WROMERO, Nov 13, 2011.

  1. WROMERO

    WROMERO Junior Member

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    I wanted to know if it would be possible to create an LLC and have multiple businesses under it? All online websites generating income. I can create generic name for example, abc marketing

    I'm assuming that you can, but I want to get word before I do create an LLC.
     
  2. awtprod

    awtprod Junior Member

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    I don't see why not. You would have to file all of your earnings under that one name and that you use the same name (DBA) for all of your other "businesses." I think lots of people do this, so it shouldn't be a problem.
     
  3. volund

    volund Senior Member

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    It is what I do. You can not have any sub corps or llc or use it as a holding company but you can run as many streams of income as you want. There is no rule that all the income has to come from one place or only be one type.
     
  4. michigandj

    michigandj Newbie

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    We have multiple businesses under our LLC. Because we needed separate names, we just filed a DBA for each business. That way if we get a check made out to our DBA, the bank will let us cash them. We did have to give a copy of each DBA to the bank.
     
  5. GreenGoblin

    GreenGoblin BANNED BANNED

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    I don't understand how that works considering each business needs a different EIN# (employer identification Number) and the only way u can do that is to have a different LLC for each business.
     
  6. benzy

    benzy Power Member

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    yeh under llc income can be generated from different sources
     
  7. volund

    volund Senior Member

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    You are not required to have a separate EIN for each DBA. As long as you do not create another entity like a second LLC or Corp you are allowed to operate as many business names as you like under a single EIN. Now you are required to treat them as one single company for tax and employment purposes but if you are running multiple streams under one LLC you are already doing this.
     
  8. notrin

    notrin Power Member

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    this is correct.

    my bank lets me cash with out dba copy






    http://entrepreneurs.about.com/od/businessstructure/a/doingbusinessas.htm
     
    Last edited: Nov 19, 2011
  9. BoltActionz

    BoltActionz Newbie

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    There are two ways to go about that.

    One is to have a parent company and each sub-company (DBA) have a separate EIN. In doing so, you create a complex situation (your accountant will probably love you, his $$$ will be bigger at end of the year!) but it is possible. At tax time, you file one consolidated tax return under the parent company EIN, and the EINs of the sub-companies are kept separate and do not file a detailed return.

    Why would you do this? Because debt follows tax ID/EIN. So if you were doing several businesses and you decided to expand one by seeking out business credit that is separate from your personal credit (separate credit reporting system for the business), then having multiple EINs is like multiple social security numbers and a personal credit file . . . it gives you options and more room to grow. Think if this as like "sister companies". One good example would be Sam's Club vs. Walmart Stores. Each is separate in their business structure, but related to the parent company. Each stands on its own, has its own debt, payroll, policies, etc. Also, by having separate EINs, each separate EIN can have its own bank account, which is good for showing revenues when showing the stats to a potential buyer.

    Depending on what the businesses in question are, it may also make sense because then you can sell off some parts of your business and retain others easier in the end. The separate EINs makes it easier when it comes time to break the companies up into pieces to sell them off to different buyers.

    The other way of doing things is to have a single EIN for the whole thing, and just keep things separated within the company records as far as expenses and income by separate division or DBA. In some cases this is actually the harder way to manage it all. But in some businesses this is the easier way to handle things at tax time.

    There is another, third way of doing things that is relatively new. But it depends on where you file your entity. Nevada allows what's called serial LLCs, which is basically where you file one LLC, reserving the right to create an additional sub-company later. Not sure if other states allow this, or that it's even a good idea, as I have not personally used the serial LLC.

    The LLC filing a DBA is also a good method to use. It's interesting because if you decide to spin off a DBA into a separate company in the future, you can have the LLC abandon the DBA and then file a separate entity (LLC or corporation) later in order to sell off the profitable section that you are willing to part with. Extra work to do it that way, but way cheaper come both tax time and annual filings with your local state in most cases.

    And by the way, I'm not a lawyer. So if you decide to take any of my info and put it to good use, you should speak with one before you get started. And not just ANY lawyer, a really good corporate lawyer that understands segregating companies.

    P.S. If you want to learn about separating and segregating companies, I suggest you head over to Wikipedia and search for "IKEA" and read how they have their company set up. Did you know that IKEA is structured like automobile manufacturers in the US? In other words, each location where the furniture is sold is a franchise? In reading about IKEA, it will open your eyes to other possibilities that may or may not be relevant to what you do, but it will be an eye-opener for sure!
     
  10. volund

    volund Senior Member

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    I am pretty positive you are not allowed to have more than one EIN per organization. A DBA does not really have any standing for the feds or in the courts for liabilities. You would actually have to create a separate corp or LLC for each EIN issued.

    A DBA is something flied locally with the county and really does not mean a whole lot of anything. All it does it let the state know you are doing business under a fictitious name so if you start scamming people it is easier for them to track you down. It does nothing more than connect your real name to the fake business name (Doing Business As), it does not protect you in any way or have any legal standing of any kind and especially not with the feds. That is why most banks ask for one to protect themselves when creating an account of cashing checks.


    Seriously I have like 30 DBAs, one LLC, one EIN and file one set of tax returns for the whole thing even though I have multiple completely unrelated streams of income and expenses both online and off. The feds have never asked me for anything related to a DBA even during my two audits.




     
  11. billybadazz

    billybadazz Newbie

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    Try a Series LLC
     
  12. savvypro

    savvypro Regular Member

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    What BoltActionz refered to as "serial LLCs" is actually Series LLC's, (some times referred to as cells) they are available in about 9 to 10 states:
    • Delaware
    • Illinois
    • Iowa
    • Nevada
    • Oklahoma
    • Tennessee
    • Texas
    • Utah
    • Wisconsin

    They need to be setup correctly, with an operating agreement that has been written correctly. Otherwise the limited liability between series wont be worth diddly.

    Something I'll have to ensure I have in place if I ever start trading with the Series LLC that I just sent to be filed.
     
  13. AdsMakesSense

    AdsMakesSense Regular Member

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    You definetely can do this, but on Tax forms, they of course must report the EIN of that business.
     
  14. Copywriter

    Copywriter Newbie

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    Yes, you can have multiple DBA's under an individual LLC
     
  15. download

    download Jr. VIP Jr. VIP Premium Member

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    I think what OP is asking is whether he can have multiple websites under one LLC. If by "business" you mean a website, of course!
     
  16. jonnyquest

    jonnyquest Regular Member

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    You can usually do what you want as long as you are above board.

    Just keep the local government, banking interests and the IRS is the know you should be OK. In fact go into your local bank and talk to the Manager and he/she will tell you what you need to do business with them.

    JQ