question about LLC

ideasforrent

Hi
I have several business ventures that I would like to conduct, and evidental hope that each would grow into a venture large enough to require their own company formation of some time, LLC or S Corp, but for now since I am just starting out on each of these it would be easier to form one LLC and hold all things related to these ventures under that one LLC and conduct business that way, and then later at the right time break off the large pieces as their own LLC`s etc.  Is this allowed.  If I start off opporating under one LLC in a business venture, is there a means for "moving" or "selling" or "reallocating" the items related to a business venture from one LLC holding several business ventures into a single LLC holding only the stuff related to that one venture for which I have formed the new separate LLC.ThanksEdward
ideasforrent.com   "Because an [idea] is a terrible thing to waste."

PiperTax

Hi Edward. Yes, it`s definitely possible to run multiple businesses under one LLC. And yes, it`s also possible to later transfer those businesses into separate entities.A couple considerations:1. If each of the businesses is going to have a different business name, you`ll have to have the LLC file a "Doing Business As" for each. Check with your state and county about the fee/requirements for this.2. If you keep them all under one LLC, if one of the businesses gets sued, the plaintiff will be able to come after all of the businesses` assets, not just the one related to the lawsuit. If you formed a separate LLC for each, you could keep their assets separate. (Not to say that this would necessarily be worth the cost and time of forming the multiple LLCs. It`s just something to think about.)Best of luck,Mike Piper
PiperTax2007-9-9 16:44:31

ideasforrent

thanks Mike,
i appreciate the info.  yea, i plan to separate the business ventures off from the parent LLC into their own LLC as they mature to the point of having something worth sueing or IP worth others trying to steal to make protection issues easy to deal with but fow now while i am just starting and don`t have anything woth anyone coming after would save money to use one and make it easier to manage.  thanks for pointer about doing business as, i`ll make note of that.  One follow up question, if several of the ventures are websites, would I need to use "doing business as" in that situation or would it be possible to treat each website as a "product" of the parent LLC?
thanks againedward

PiperTax

Well, the point of a DBA is to allow a person (or business) to do business under a different name.For most online businesses, the website is also the business name.  So my answer is that most likely, yes, you`ll need a DBA for each website.However, if on each website, you clearly mentioned who runs the website (your LLC), and there was nothing that would lead anybody to think that your business was named anything else, you`d probably be fine without all the DBAs. You`d want to be very deliberate about this though, including your LLC`s name on your About Us page, Contact Us page, Privacy Policy page, and so on.
PiperTax2007-9-9 23:40:59

SandraP

Ok, please forgive my naivete but -
If you are running a website, a completely "virtual" company - is there a preferred form, LLC or Corp?
Thanks!
~Sandra

PiperTax

Well, what type of entity you want doesn`t really have much to do with whether you`re an online business or not.I almost always suggest that a business simply stay a sole proprietorship when just starting out. In my opinion, LLC/corporation formation is far too heavily promoted for new businesses. Generally, unless yousell a product/service that`s likely to cause liability issues,have employees, orare making pretty serious money (roughly 6 figure range)...there isn`t much reason to change from being a sole proprietorship. Granted, these are all just rules of thumb, and it`s a good idea to do a good deal of research before deciding for sure what you want to do.

robertj

Ok, please forgive my naivete but -
If you are running a website, a completely "virtual" company - is there a preferred form, LLC or Corp?
Thanks!
~Sandra

Sandra,
The type of business is but one of several points to consider when choosing a business structure. I don`t see either as inherently "right" for an on line business. One "size" does not fit all. Your personal needs and objectives should be considered as well as the "long-term" plan for the business.
 

pepperlegal

Well, what type of entity you want doesn`t really have much to do with whether you`re an online business or not.I almost always suggest that a business simply stay a sole proprietorship when just starting out. In my opinion, LLC/corporation formation is far too heavily promoted for new businesses. Generally, unless yousell a product/service that`s likely to cause liability issues,have employees, orare making pretty serious money (roughly 6 figure range)...there isn`t much reason to change from being a sole proprietorship. Granted, these are all just rules of thumb, and it`s a good idea to do a good deal of research before deciding for sure what you want to do.
I generally agree with Piper, but would add that there isn`t much downside NOT forming a LLC (assuming the LLC is the right business entity for you).  Costs are minimal, as well as the ongoing administration.There is also some value, I suppose, in holding yourself out as a LLC versus a sole proprietor, as many see the former as the establishment of a more "professional" appearance.  I`ve even had clients elect to form a corporation, even when a LLC made more sense, because they felt having an "Inc." after their name created a better image.