Many entrepreneurs opt to file a new LLC or corporation for each of their startup ventures. The main advantage of this approach is that it isolates the risk to each individual business. Should a client sue your landscaping business, your golf course business will be protected.
The main downside with this approach is that it involves additional maintenance fees and paperwork. For some entrepreneurs, all this separate paperwork can be a pain.
But for others, the added fees are well worth it in order to protect each individual business from the others. In particular, real estate investors often form an LLC for each property in order to shield each investment. With this approach, each business venture can use the right branding and company name, while you simplify some of the annual maintenance. This scenario is common in a few situations. One, for companies that are looking to be acquired or potentially spin off one of their businesses.
Two, for established companies that are looking to start a new business and the established company will fund the new venture. Create Account Forgot Password? Previous Next. View Larger Image. Different government agencies have different names for their form to file a DBA.
Several examples include: Florida — Every five years Texas — Every ten years New York — No renewal required CorpNet is here to make filing a DBA simple and hassle-free by: Doing a preliminary name search to ensure the fictitious name you want to use is available.
Preparing and filing the DBA form with your state or county. It depends. If a business name is a registered trademark, the name is protected in all 50 states. Filing a DBA does not legally protect the name, but it may deter other businesses from using the name. Final Thoughts on Multiple Businesses Under One LLC While running multiple business ventures under the umbrella of an existing LLC offers a degree of simplicity and avoids multiple business formation fees, the matter of liability risk to the business and business owners is something to think about carefully.
Creating separate LLCs for each business requires the time and cost to register individual business entities. This route insulates each company from the lawsuits and debts of the other LLCs. However, it may have advantages from liability protection and tax standpoints, depending on the situation. About the Author: Nellie Akalp. The members also need to avoid self-dealing when it comes to LLC business.
If a member violates the duty, he will be personally liable for the loss or damage to the company caused by his actions. If a person attains multiple LLCs , he may have a duty of loyalty to each company. This duty of loyalty may limit the ability of a member to actively participate in each business in the case of similarities in operation. Owning multiple companies can make things complicated for a business owner, because he may have a duty of loyalty to each company.
The owner may struggle to avoid violating the duties of one company, while actively participating in the operations of another company. For example, a business owner has a membership interest in a linen supply company and a hotel. He wants to establish a contract to have the linen supply company to provide linens for the hotel. Thank you for comment and thank you for reading our blog. We will have a Sales rep reach out to you to better assist with your question.
Sinenhlanhla, Thank you for reading our article and glad you found the article to be helpful. This was super helpful. Thank you so much for this detail diagram of information. I want to have a vending machine and a business for wholesaling houses, would a DBA be good for those lines of businesses? Thank you for reading our article and we're glad you found it helpful.
We will reach out to you directly to help with your question. Just wish to say your article is as astounding. The clearness in your post is just excellent and i could assume you're an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please continue the gratifying work. Disclaimer: Harvard Business Services, Inc. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions.
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