Can You Register More Than One Llc

Business organization clients frequently ask if they can structure multiple businesses under one LLC. Generally, yeah.

Nonetheless, how you should construction multiple businesses depends on the circumstances and goals you lot have for your business.

Are you lot a young entrepreneur looking to launch your adjacent venture equally a different brand? Are y'all in the real estate rental business looking to minimize your liability exposure?

Perhaps you lot own a law house and are looking to open up a café down the street? In full general, business organisation owners looking to operate multiple businesses at once in Florida have three options for structuring their affairs. Permit'southward walk through the pros and cons for each.

According to Business concern Attorney Trevor Brewer, "The conclusion whether to combine business lines nether a single company or maintain separate companies for each of them largely comes downward to ii factors: (1) the similarity of the concern lines, in terms of opportunity and chance, and (2) the increased costs and risks associated with managing multiple companies."

Set Upward Several DBAs Under a Single LLC

Information technology is common for a business to annunciate and operate nether dissimilar names from its legal one. DBA stands for "doing concern as." In Florida, a DBA is also referred to as a fictitious name.

A DBA allows yous to operate multiple businesses under a dissimilar name than your own proper noun (in the case of a sole proprietorship) or the registered proper name of your business concern.

For case, if you operate a retail business organisation called "Brick-and-Mortar Retail Clothing, LLC" and subsequently make up one's mind to expand the business organization online, A DBA will let you lot to use a more marketable name such as "RetailClothing.com."

How Many DBAs Tin can an LLC Have?

Concern clients ofttimes ask whether they tin have multiple DBAs under one LLC. In Florida, owners of an LLC tin apply for an unlimited number of DBAs.

A business tin use a DBA to advertise and transact business. Florida law requires you to register your DBA names so that the public is aware of who is operating the business concern.

LLC owners must pay to register each separate DBA they wish to utilise. Notation that a DBA can exist registered at whatsoever time. You lot can apply for a DBA when you first register your new business. Or you lot can apply for a DBA later if you decide to brand changes to your business later downwardly the route.

Tin can I Use the DBA to Sign Contracts?

This is generally not a good idea. It is important to utilize your registered LLC name, and non a DBA when signing contracts or other legal documents. Customers should know that they are dealing with a limited liability company.

This would include service contracts, contractors, suppliers, and vendors. All the same, this doesn't hateful you must include "LLC" in every communication.

For example, you might non want to include "LLC" on logos or website marketing materials (Withal, you might disclose in the website'southward terms and conditions).

What Are the Benefits of Running a Business concern with DBAs?

This organization is not bad for those looking to expand their business organization into a second make just stays nether one entity. After registering your DBA, yous don't receive any additional legal rights protections per see.

Yet, proper registration with the Florida Secretarial assistant of State serves to give observe to anyone else seeking to do business organisation under the same DBA. An boosted advantage of using DBAs is that it keeps administrative costs down. Y'all don't have to go on split up bank accounts, bookkeeping, or operating agreements for each business.

What Are the Drawbacks of Running a Business with DBAs?

A DBA by itself does not create a separate business concern or legal entity. It is all part of the one LLC. This means that if you operate multiple lines of businesses nether a single LLC, they all share liability. In other words, if one make gets sued, it'south the LLC getting sued, not just that i DBA.

A DBA is non going to separate and shield the LLC from the debts and obligations of the other lines of business concern.

Fix Upwardly a Belongings Company

Another fashion to structure multiple businesses nether 1 LLC is to set a holding visitor. Under this pick, you lot would create separate LLCs for each new business venture and "hold" them under your principal LLC. This arrangement is also referred to as an umbrella company or parent company.

Typically, the function of the primary LLC is to simply own the new businesses, while management takes place at the subsidiary level.

What Are the Benefits of Organizing My Multiple Businesses Under a Belongings Visitor?

A property company has two primary benefits. These are liability protection and tax benefits. With respect to the former, one example may be the owning and renting of real estate to college students.

Generally, if the owner owned more than one rental property, they would form split up LLCs for each of the rental properties.

This protects the parent visitor and each rental property from the liabilities of the other. For example, if the higher kids had a political party and someone got hurt and successfully sued the owner, the parent business organization and all the other subsidiary properties would be protected from collections.

As long as y'all bide past your state's LLC laws, your liability is limited to what's in that LLC.

A nice matter near an LLC is that y'all don't have to file a separate taxation render for each subsidiary LLC. This is because the income earned from each subsidiary flows to the parent company.

What Are the Drawbacks for Organizing My Multiple Businesses Nether a Property Visitor?

A holding company tin be expensive to manage. It tin can also cost you lot a lot of coin to continue upwardly multiple LLCs. Note, that for Florida LCCs, the initial filing fee is approximately $100 with annual report filings at $138.75 per twelvemonth.

In addition, owners typically hire registered agents for each separate LLC. A registered amanuensis is 1 who receives service of procedure on behalf of your LLC. In Florida, a registered agent will run approximately $100-$300 per business per year.

Finally, an umbrella company is going to generate a lot of paperwork. The more LLCs you have, the more than complicated your structure is going to exist.

Create Independent LLCs for Each Business organization

Many business owners choose to form a new LLC for each of their business organization ventures. In Florida, in that location are no restrictions on how many LLCs a businessperson may create.

What Are the Benefits of Creating Contained LLCs for each Business?

Like creating a property company, this option protects each LLC from the liabilities of your other LLCs. For example, a practicing dr. may decide to grade an independent LLC for their new café venture.

In the event the doctor becomes personally liable to a patient for medical malpractice, that patient can't go later on the assets of the café business concern. That business is shielded from collections.

What Are the Drawbacks of Creating Independent LLCs for Each Business?

What'southward the downside of this approach? Similar the holding company selection, creating multiple LLCs comes with substantial compliance fees and paperwork.

This includes registering manufactures of arrangement for each company, maintaining separate operating agreements, filing annual reports, and paying applicable fees for each LLC.

Furthermore, each LLC must obtain a split employee identification number and its own business licenses and permits. Finally, each LLC must maintain its own records and bank accounts.

What Is the Difference Between Operating Independent LLCs Versus a Holding Visitor?

While operating multiple LLCs share many similarities with the property company approach, the two options differ materially in one expanse: tax consequences. When at that place are multiple LLCs organized under a single belongings company, information technology may be possible to file a single consolidated tax return.

This can consequence in a lower taxation liability. In comparison, you must typically file divide tax returns for each LLC if you lot cull to operate contained businesses.

Consult with an Experienced Business Constabulary Professional

Tin can y'all have multiple businesses under one LLC? Yep. However, how you lot should construction your businesses depends on the businesses' unique characteristics and circumstances. Before embarking on your next business organisation venture, consult with an experienced legal professional.

Our business law attorneys at BrewerLong have been helping Florida businesses with germination and other business law issues for over a decade. Contact us online today for a consultation.

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Primarily working with business concern owners and their families, Trevor advises clients on business concern structuring and sale transactions, regulatory compliance, third-political party contracts, liability protection and general matters facing small business owners. His focus extends across legal advice and includes business strategy and wealth preservation. Trevor also works with families regarding their manor planning needs, including probate, trust administration, and wills.