Forums: Discussions for entrepreneurs and small business.

I have a couple of different online businesses I am about to launch and I was wondering what the best way to set everything up would be. Is it possible to have one LLC like "My web businesses LLC" for everything or do I need to do separate ones for each. Or is just the DBA route the direction I need to head in??? I am very new to this so please bear with me. I am basically looking for the easiest way to do it come tax time!!! If I am not mistaken I would only have to have one merchant services account then as well. What do you guys think is my best option?

Thanks,

Brian

Hi,

I believe you can have the same LLC for all your online businesses.

BR,

Ovidiu

You definitely can have one umbrella corp to cover all of your online startups, but the question is...is it the best way to go?

I am actually in the same boat as you.  What I am considering is what would be easiest when I look to sells parts of the business off, what would be easiest when I offer partners part of the business, etc.

Still in the very early stages, but I don't know what I'm doing either!  I hope someone can chime in with some pro's and con's of each.  Maybe we should also post this on LinkedIn?

Brian,

The biggest deciding factor that people choose a particular business structure is when it comes to “Tax Liability”. An LLC is a very attractive business structure because is easy to form, is not double taxed such as with a “C-Corp”, however there are some drawbacks. For example, I’m sure you have not thought about (who would), but if your business is an LLC, if something would to happen to you and you pass away, the business dissolves.

I’m in a similar situation; I have three online projects I’m trying to launch at the same time. Not because of money, but because I strongly feel that I’ve found a niche, there’s  research to back up the need in the market, and because I’m so passionate about my ideas that I’m launching them at the same time.

BACK TO LLC. I’m planning to file an “S Corporation” for the parent company (for example BrianGroup, Inc.), which is a great way to avoid the double taxation issue. The gains/losses are reported on YOUR individual income tax for federal purposes, although you still need to file form 1120S, which is the federal income tax form for your business. This means that any startup costs, you can claim as business expenses in your income tax return, which will reduce your tax liability.

An “S Corporation structure does not dissolve it something happens to you, it’s a separate entity, meaning if your company gets sued, you will only loose what ever you have invested in the business; not your house, not your personal back account. For more information, check out this link for Legal Zoom, which compares all the options available, once you know the structure you want, shop around for an overall best deal.

http://www.legalzoom.com/business-formations/compare-documents.html

Good luck,

Yosniel

I am suggested to create an LLC for your business. Because LLC (Limited Liability Company) has the ability to manage multiple businesses under one LLC. You are not required to establish a separate entity for each business. Limited Liability company also limits your liability at some extent and all members of the LLC can be exempted by pulling out the payroll. You may also contact visit this link Infotaxsquare

Thanks,

For online businesses, you can easily operate them under a single LLC and it does become much easier to operate. LLC is also a good option as it protects your personal assets from any business liabilities.

Single vs. multiple enitities? What is your ultimate goal? If you decide to sell off a line of business, can it easily be separated from the other lines?

From an accounting standpoint, if the lines of business are different enough, you will still want to keep track of sales and costs by product line, etc. If not, you may see that the overall buiness is making money, but one product line that is profitable, may be subsidzing another product line. This doesn't not have anything to do with single vs. multiple LLC's but you still want to see a prodit and loss by product to help determine which areas of the business need more attention.

As to legal liability, sure it helps shield your assets in a lawsuit. However, don't think for a minute that it will save your persoanl assets if you default on a business loan. You can be sure that if a bank gives you a loan, they will want a personal guarantee from you if there is not sufficent collateral or other assets within the business.

Ed Baloga, CPA / MBA
Principal CFO
Baloga Associates
ebaloga@baloga-associates.com
www.twitter.com/edbaloga

A few states (Nevada, Delaware, Oklahoma and Iowa) have the ability to create a "series LLC" that has only one set of filing fees and annual filings, but provides separate protection for each business, with separate names for each business.

Best regards,

Molly Donaldson