Create Your Own Llc Company – You have fantastic ideas for new businesses. You are ready to incorporate to protect yourself and your personal assets and have decided it is time to take the next step and create a Holding LLC for your various endeavors. The questions then become: What kind of business activity can I do with my LLC? How many different companies can I manage under an LLC? Do I need to configure database administrators? Do I need to create a separate LLC for each project? Will a series LLC work for me or should I stick with the more traditional LLC? By now, Delaware is known to be the gold standard when it comes to forming an LLC, LP or Corporation. The Delaware LLC is by far the most popular type of entity for most entrepreneurs building a startup. As a result, people often wonder if they can manage multiple LLCs under one LLC holding company. Structuring Multiple Companies Under an “Umbrella” LLC Can you have multiple companies under an LLC? For example, let’s imagine that a business owner has a trucking company set up as an LLC, but after some time may want to offer real estate services as well. These are two completely different types of businesses, so the question arises whether the owner can offer both services under an LLC. Part of the consideration of owning multiple companies is, of course, the desire to avoid the added expense of maintaining another LLC. The answer is yes – it is possible and permissible to operate multiple companies under one LLC umbrella. Many entrepreneurs who choose to do this use what is called a “fictitious name statement” or “DBA” (also known as “doing business as”) to run an additional business under a different name. However, just because it’s allowed and possible to operate multiple businesses under an LLC or corporation doesn’t mean you should, as there can be downsides. For example, if a lawsuit is filed against one of the companies, the assets of the others may be at risk. As a result, you expose yourself to a higher level of liability risk. In other words, if one of the parts (companies) within the LLC was liable, the entire LLC could also be liable. 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 startups. Owning multiple businesses under a separate LLC isolates risk by dividing the debts and liabilities of each business. Think of the separate entities that help to erect a huge brick wall between each LLC. Of course, there are additional maintenance costs, but they can be worth it to protect your businesses and provide the peace of mind that separate LLCs will afford. What about Series LLC? Some people explore the low-cost series LLC when they want to manage 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 doing business with a serial LLC. Many service providers, banks, lawyers, accountants and other companies are still unfamiliar with the concept of series. It often takes time to explain the concept of the series and get the approval of the required documentation, for example from the bank’s lending team. Generally, it is safer and smarter for people to keep their business ventures 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 Separate Businesses As it stands today, the tried and tested practice of creating separate LLCs that are formed for each version of the business is traditionally still the most recommended strategy by tax professionals, attorneys and business advisors worldwide. . This means that for each business sector, for each product line, for each service offered, for each piece of real estate, clients will often consider forming separate traditional LLCs. For people who own multiple businesses, this ensures that the assets, debts and liabilities of each LLC are completely separate and protected from each other in the event of potential legal conflicts. When creating multiple LLCs, it can be very useful to develop a hierarchy of plans to match the relationships between the individual LLCs. For example, people commonly form multiple LLCs for real estate development. This framework often consists of a parent LLC at the top of the hierarchy – say ABC Holding Company, LLC. Next, people typically create multiple sibling LLCs, one for each piece of actual real estate—let’s call them ABC Real Estate 1, LLC; ABC Real Estate 2, LLC; and ABC Real Estate 3, LLC. Each LLC may own, operate and be responsible for a portion of the property; So while all LLCs share the same holding company – ABC Holding Company, LLC – and may have similar structures, ownership interests, assets and liabilities, they are isolated and shielded from each other to protect property and resources of each individual. LLC Delaware LLC properties are also considered a smart and strategic way to further protect your personal assets from your LLCs. If you would like more information or have any questions about starting your own businesses or adding another business under a parent LLC, please contact us by phone (800-345-2677), Skype (), email or live chat. One of our trained business start-up 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 in cases where the author is a lawyer or tax professional, nothing in this article constitutes legal or tax advice. This article provides general comments and analysis of the topic at hand. We strongly advise you to consult an attorney or tax professional to obtain legal or tax guidance tailored to your particular circumstances. Any action taken or not taken by you based on this article is at your own risk. If an article cites or provides a link to third-party resources or websites, Harvard Business Services, Inc. is not responsible for the content or accuracy of this resource and makes no guarantees in this regard. The opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
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Create Your Own Llc Company
I have an LLC and wanted to start another business unrelated to my first business. I believe I can apply to be a DBA and have this company under the first one. But I was thinking about keeping them separate by becoming a sole proprietor and then getting an EIN for another business. How do I get a “dba” business name for a sole trader? It seems the only way I can register the dba trading name is by registering it under another entity or my own ltd.
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Thank you for reading our blog and for your question. Generally, you will file a separate LLC for each separate entity so that all of your eggs are not in one basket. A representative from our office will provide you with more information and answer any questions you may have.
Hi, I am an owner of four properties. I happen to be able to advise which type of LLC we recommend. Also, I will be buying real estate in a neighboring state, will I need to set up another LLC in that state? Thank you Stephanie
Thank you for reading our blog and thank you for your question. We will be happy to assist you with your inquiry and will contact you shortly to assist you further.
Hello, thanks a lot for the article. I plan to start a laundry business as an LLC and hope to have more. However, I also have a DBA in the process if I can use the DBA for banking purposes as an LLC, but let each potential laundry have their own LLC separate from the DBA. Or will I have to have completely different accounts for each company under their individual LLC?
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Thank you for reading our blog and thank you for your question. One of our representatives will be happy to get in touch and help you explain all of this in detail.
Hello, my name is Precious. Thanks for the article, really insightful. I currently have a business that provides services, but I want to start others that deal with products, do you suggest that I brand all my businesses instead 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 requirements further. One of our representatives will be in touch shortly.
Hello I find your website very informative. My question is I have started an incorporated llc which is in the process of becoming a non profit corporation. A good friend wants to start a profitable company unrelated to my original doo,
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