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Starting multiple Online business`s

INITECHWebDesignINITECHWebDesign subscriber Posts: 3
edited November 2008 in Business Planning
I already have an online business (with a DBA and all that) and I am currently in the process of starting 3 other online companies. All three are in different fields completely. My question is, what is the best way to set everything up as far as my DBA and tax ID goes and all of that stuff.  Do I need a seperate DBA for all three companies or could I set up an LLC like "mynameEBIZ LLC" and do everything that way? Then all of my websites would bill their customers through my "main" company. Someone please point me in the right direction!!!
 
I live in Texas, don`t know if that is relevant???
Thanks,
Brian  
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Comments

  • DeenaEsqDeenaEsq subscriber Posts: 0
    Generally, the easiest thing to do (and the best way to protect yourself) is to file as an LLC or S-Corporation.  Once you have your LLC/S-Corp set up, you file a DBA with the state for all 4 online companies.  That way all companies can use the protection of the LLC.  Make sense? 
     
    Let me know if you have other questions.
     
    Deena
    _______________________________________
    Any opinions are offered without knowledge of the specific law of your jurisdiction and with only the limited information provided in your post.  No advice given here should be reasonably relied upon by you or any third party without consulting an attorney who is aware of all of the facts and law surrounding your situation.  Any advice given here is not intended to create an attorney-client relationship in any way.
     
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  • drm7drm7 subscriber Posts: 1
    I have heard that sometimes it is better to set each company up as a separate entity (LLC, etc).  This may afford protection of one from another should something drag one down.  I have no experience here but just wanted to provide food for thought.  I would seek legal counsel before proceeding.
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  • INITECHWebDesignINITECHWebDesign subscriber Posts: 3

    Generally, the easiest thing to do (and the best way to protect yourself) is to file as an LLC or S-Corporation.  Once you have your LLC/S-Corp set up, you file a DBA with the state for all 4 online companies.  That way all companies can use the protection of the LLC.  Make sense?   Let me know if you have other questions. Deena
     Deena, Thank you very much for the info. a few questions....   1. At the end of the year would you do a seperate tax return for each company? 2. Could I do a merchant services account with just the LLC company and then bill my clients through that company??? Thanks,Brian ps... looks like I`ll need your services soon!!!
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  • DeenaEsqDeenaEsq subscriber Posts: 0
    1.  I`m not a tax attorney, but I think that you`d do tax returns just like you would for a sole proprietorship (which is with your personal taxes), but there are particular situations where you`d have to file separately.
     
    2.  Yes, you can.
     
    drm7 - I agree with what you`ve heard.  It`s often a good idea to set up separate companies (LLCs) rather than doing a DBA for each company as it provides you more cover. 
     
    D
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  • pepperlegalpepperlegal subscriber Posts: 2 Member
    Brian,
    If each company will be in different fields completely, you may want to consider having separate business entities for each for liability purposes.  For example, if one of your businesses generates liabilities, having it structured as a separate entity would generally insulate it from affecting your other businesses.
    Whether you form a LLC or corporation depends upon many factors, including tax, management, administration, and other issues.  I`d recommend seeking legal counsel to evaluate your situation more fully.
    And at the risk of sounding spammy, you can also check out my new DVD - the Legal Considerations of Starting an Online Business which goes through these issues in detail.
    Good luck!
    Dan 
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  • INITECHWebDesignINITECHWebDesign subscriber Posts: 3
    Thanks Dan, I`ll check that out!!!
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  • DeenaEsqDeenaEsq subscriber Posts: 0
    It depends on the individual situation with the company.  Very often, it is less expensive for you to just register in your home state (because if you register out of state, you`ll still have to register as a foreign corporation in your home state). 
    Delaware and Nevada are very popular out of state registration states because of their strongly pro-business laws.  If you`re in a high risk business where you think you might get sued, I generally recommend Delaware or Nevada (I have no particular preference as to which).  If you want some more information about why, you can check out my blog post at blog.ebusinesslawgroup.com on piercing the corporate veil.  Otherwise, I recommend to my clients to register in their home state...
     
    Let me know if you have other questions.
     
    Deena
    ______________________________________________
     
    Any opinions are offered without knowledge of the specific law of your jurisdiction and with only the limited information provided in your post.  No advice given here should be reasonably relied upon by you or any third party without consulting an attorney who is aware of all of the facts and law surrounding your situation.  Any advice given here is not intended to create an attorney-client relationship in any way.
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  • WebJunkyWebJunky subscriber Posts: 8 Member
    i currently own 3 income generating websites and each have their own LLC.  the reason is for liability protection (each`s assets are separate and independent from the rest).  this also protects me personally.  in MI it costs $25 - $50 to set up an LLC. in TX the fee for an llc is $300 i believe isn`t it?  alternatively you can roll all internet companies under one LLC as suggested.  just remember that as part of one group, they are not independently protected from liability.  i have found my structure to have worked for me.  last year i decided to sell an ecommerce company.  from a legal and transaction standpoint everything went very smooth as i simply transfered the business and disolved the LLC.  i am sure you can do something similar even when all 4 are rolled into one LLC, in which case you sell the business and the DBA (if you wish) and keep the LLC with one less company under it.
     
     
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  • INITECHWebDesignINITECHWebDesign subscriber Posts: 3
    Thank you for the information!!! one question though, do you still need to get a DBA for each company???
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  • WebJunkyWebJunky subscriber Posts: 8 Member
    in my experience a DBA is not really necessary.  let`s say you have a website with a domain name of brian.com...you may get a DBA that is "brian.com" however you don`t have to as that URL belongs to you and the business form is your corporation or partnership. i have found DBAs to be more critical with brick n mortar type businesses like the dry cleaners my father owns.  he has filed a DBA for the name of the cleaners since its odd to name a cleaners xzy corporation.
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  • WebJunkyWebJunky subscriber Posts: 8 Member
    of course you can nan.  many companies (despite different names) have the same footer on their website linking them to the parent corporation.  you are simply a "subsidiary" of the main body.  think about your businesses. are they related? does it make sense to focus on one brand? 
    the advantage is that over time as you build brand equity and recognition you will be able to introduce new products into the market and already have people who know you. if they are happy with what you have provided in the past, you are almost guaranteed instand credibility and potential sales the minute you launch your new product. some food for thought
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