Can an LLC own part of another LLC [With Pictures]

Last updated : Aug 6, 2022

Can I create another business under my LLC?

The answer is yes--it is possible and permissible to operate multiple businesses under one LLC. Many entrepreneurs who opt to do this use what is called a "Fictitious Name Statement" or a "DBA" (also known as a "Doing Business As") to operate an additional business under a different name.

How do I have multiple companies under one LLC?

Another way to structure multiple businesses under one LLC is to set up a holding company. Under this option, you would create separate LLCs for each new business venture and “hold” them under your primary LLC. This arrangement is also referred to as an umbrella company or parent company.

Is it better to have multiple businesses under one LLC?

While it might seem tedious or require additional effort to set up a separate LLC for your new business idea, it's often a better route to take than running both businesses under your current LLC.

Can my LLC have a subsidiary?

An LLC subsidiary can be an excellent way to organize your business. The subsidiary provides a way for your LLC to expand and grow while still maintaining the same organization as the parent company.

How many businesses can you put under an LLC?

You can run two or more businesses under one LLC by either: running all the business activities under one LLC name, or. registering DBAs (“doing business as”), also known as Fictitious Names.

What is it called when you own multiple businesses?

A conglomerate is a corporation made up of several different, independent businesses. In a conglomerate, one company owns a controlling stake in smaller companies that each conduct business operations separately. Conglomerates can be created in several ways, including mergers or acquisitions.

How do I create a subsidiary LLC?

1. Choose a name for the LLC subsidiary.
2. Create the subsidiary's Articles of Organization.
3. Write a subsidiary Operating Agreement.
4. Register the subsidiary with the appropriate government agency.

Can two LLCs work together?

Yes, two different limited liability companies can conduct business under a single business name. The LLCs might engage in a joint venture without creating a separate legal entity. Or they might create a general partnership or another LLC to run the business.

Can one business own another business?

Can a company own a company? Yes, a subsidiary is created when a company owns another company. Creating a subsidiary can be a complicated process that varies depending on the location of the parent company.

Can two LLCs have the same EIN?

Each one will require a separate, unique EIN. You cannot use the same EIN for multiple businesses, even if they are owned by the same person. EINs are not limited, so you may apply for as many as you need. You are dividing your business into separate entities.

How do I add another business to my EIN?

If you have already filed your return for the current year, write to the IRS at the address where you filed your return and inform the agency of your new business. Include your EIN number and have a corporate officer sign the letter.

Can you have 2 LLC with the same name?

Can Two LLCs or Companies Have the Same Name? Yes, with some exceptions. When you're forming a corporation or an LLC in a state, the name must be unique to your business within that state. Others can form LLCs and businesses in other states that have the same name as yours.

Why would an LLC own another LLC?

Why Would an LLC Own Another LLC? Business owners who have several lines of business often form a parent LLC and subsidiaries to minimize their risks. Because of the liability protection provided by LLCs, if one part of the business fails, it won't jeopardize the others.

Does a subsidiary LLC need to file taxes?

An LLC with LLC Subsidiaries Your subsidiaries with LLC status do not pay taxes. They pass all profits through to the parent company, which passes profits to you directly. The only tax paid on the money is your individual income tax.

Why do companies create subsidiaries?

What Is the Purpose of a Subsidiary Company? The main benefit of subsidiary companies draws from the fact that they are different legal entities to their parent company. This means the two companies can limit shared liabilities or obligations and will be separate in terms of regulation or tax.

Can you have multiple LLCs under one address?

Making multiple LLCs, in fact, is perfectly legal; there is no limit to the number of LLCs one person can register. On the other hand, it's more paperwork than you might otherwise need to do. Taxes become individual taxes for each LLC, rather than one larger aggregate whole.

How do I file taxes if I have two businesses?

If you have two businesses, you'll need to file multiple Schedule Cs — one for each business. But, you can include all the forms and calculations with your personal income tax return under your TIN, which distinguishes your sole proprietorship.

How do I have multiple LLCs?

Forming multiple LLCs means completing formation paperwork and paying a filing fee for each LLC. In many states, LLCs must also file an annual report and pay an annual fee. Since each of your LLCs is a separate business, each must maintain its own bank account and keep its own financial and business records.

Can you be CEO of 2 companies?

C-suite executives often serve on the board of multiple corporations. Even within a corporation, they may be involved in multiple companies.

Can you have multiple businesses under one limited company?

Yes, it is possible to run two or more separate businesses under a single limited company. This involves the use of trading names to compartmentalise the overall company into separate units, each of which can be run as a unique business.

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Write a comment

hi my name is maisie and i am with northwest registered agent i'm going to talk to you about why you might want to have an llc owned llc llcs are commonly owned by a single member or group of members however it can also be owned by another llc which is known as a parent llc this might seem a little redundant but having an llc owned llc can definitely have its benefits there are two main reasons why people choose to have an llc owned llc one of those reasons being asset protection if your business has many assets such as real estate or multiple high-risk components such as construction creating separate llc's for each branch of your company might be very helpful and would also provide each of them with their own liability protection another reason is privacy many states such as florida require that you publicly list all member names on state record and on your articles of organization to avoid that you can form a parent llc in a private state and list that llc in place of the individual's name in florida giving you that privacy the biggest downside to having an llc owned llc is time and cost every time you form a new llc you have to abide by each state's statutes and file the necessary formation documents and pay the filing fees to form an llc even if it isn't an active business like the parent llc you will also have to make sure that you are filing annual reports and paying any annual fees to be sure that you are keeping the llc's active in each of their states you can form an llc owned llc the same way you would form a traditional llc however instead of listing a person's name for your llc's member you would just list the name of the parent llc if you have any questions about your llc or forming a parent llc please do not hesitate to reach out as we are more than happy to help you

Thanks for your comment Nolan Clougherty, have a nice day.
- Tobias Mendiola, Staff Member

are you interested in forming an LLC for your online businesses or business today I'm going to share with you four tips to know how and when you need to form an LLC as a holding company for your online businesses let's do it hi my name is Jim part and the founding attorney here at Hawthorn law and we help small businesses and online entrepreneurs to get their legal house in order so that they can do something that truly matters in the world and today I'm here to share with you four tips that you need to know about to determine when and how you should form an LLC as a holding company for your online businesses and I have to say I'm really excited about today's video because a lot of you in Prior videos have asked me about whether or not I could use a whiteboard you're in for a treat today because I am going to be using a whiteboard as well we're gonna test this out we're gonna see if it works I think it'll work but anyway we're gonna do that today and before we go any further just remember if you haven't already go ahead hit the subscribe button click the bell thingy and and like the video if you like what I'm talking about today's question comes actually from a viewer and today it's from Myles he says could you create a video discussing how to set up a holding company I have a few side hustles that generate income I want to expand what I'm doing so I'm interested in learning how I would approach that I've read that setting up holding company to house the other businesses is a good strategy in terms of legal protection and for filing taxes I've also read it is better it's a better idea to form the holding company prior to creating the other LLC's or whatever structure if possible I'm not sure what's legit and what's nonsense could you broach that topic in a video any guidance or common practices as a starting point would be appreciated Thank You Myles for the question I appreciate it and try and answer that as best I can I'm gonna start by first discussing what a an umbrella LLC also called a holding company LLC is then we're going to talk about the main benefits of forming an LLC as a holding company for your online businesses well touch a little bit on the downsides of forming multiple LLC's and and what can happen if you do that because it's it's not all it's not for everyone I'll be honest but we're gonna talk about that and then we're gonna finish up by talking about when is the best time to form an LLC as a holding company to house all your multiple businesses are you with me on that all right let's jump over to the whiteboard I'm gonna test this out let's do it okay so when we're talking about an LLC we're really talking about here is an umbrella LLC so I know a lot of you been asking for a whiteboard so we're just going to do this is this is LL I'm gonna get used to this here this is the first time we've ever done this the whiteboard so it's kind of cool so this is gonna be a low number number one this is going to be what we call the umbrella LLC and so the box are on that and this is going to be this this LLC right here is going to own all the other LLC's so let's say you've got two other brands that you want to own so this is going to be I'll see you two and this is going to be l.l.c number three okay so this this LLC is actually going to own this LLC and it's going to own this LLC and so what you're going to do is you'll form this LLC first and then you can form these LLC's next and that's basically what an umbrella LLC is so the the member of this LLC is going to be LLC number one and the member of this LLC is going to be LLC number one and there's all sorts of other complicated strategies that can be used but this is the basic idea when we're talking about what is an umbrella LLC all right now we're going to jump into number two which is the main benefits of forming an LLC as a holding company for or your online businesses and there's really two main benefits that we're going to talk about here today and those are liability protection and tax benefits so let's start with the first one liability protection the basic idea here is and a good example of this is if you own rental real estate and a lot of people if I've had clients that owned multiple rental properties and if you own more than one rental property then generally speaking you want to form a separate LLC and also these can be called series LLC's for each of the rental properties you own and the reason for that is let's say somebody gets injured or you know maybe you went to college students and they have a party and somebody gets hurt and that happens in one of your rental properties if you've got all the rental properties in the same LLC and somebody Sue's you for what happened with one rental property then all the other rental properties can be basically attached to a judgment so they can be they're not protected from liability there but if you if you put one rental property in one LLC and another rental property in another LLC and another rental property and another LLC and if somebody Sue's one of those LLC's because they got hurt in that rental property they can't get at the other two or three or four however many rental properties you have because there's a shield of protection in place there I mean we're assuming you're not doing anything to pierce the corporate veil we've talked about that in a prior video but as long as you're not doing that then you your liability is limited to what's in that LLC and the same is true for your online business so if you've got multiple businesses that you're operating under one single holding company you know that the example I like to use is Pat Flynn because he's got a number of businesses now that he's running under the smart passive income brand you know he's got this switch pod and he's got his smart podcast player and he's got his general affiliate and revenue that he makes so he and I don't know what his legal structure is because I'm not affiliated with him at all chances are I suspect he probably has a lawyer and and he probably has different LLC's maybe maybe not Pat if you're watching this you want to reach out I'm happy to help the idea being that you would have a different LLC for each of those unique businesses because if something were to happen with the switch pod player I don't maybe knock yourself over to heaven with your switch Bob player it's not a switch pop players the switch pot switch pot he's got the smart podcast player not to get those confused anyway if you were to like knock yourself over the head with the switch pod or maybe they it swings around and you Jam your knuckles or something I don't I don't know how you can get injured using that but if you did get injured using that then then nobody you can't sue him with the smart podcast player if that makes sense and so if you've got a business if you've got and so if you've got an online business and you have you know you've got you're making some affiliate revenue here and perhaps you've got some courses here and maybe you've got some other digital products here that you're selling or maybe you've got you know an e-commerce business over here

Thanks Ismael your participation is very much appreciated
- Tobias Mendiola

About the author

Tobias Mendiola

I've studied machine learning at Thomas University in Thomasville and I am an expert in physiology. I usually feel lonely. My previous job was health case manager I held this position for 28 years, I love talking about badminton and fly tying. Huge fan of Chris OG��Dowd I practice snowshoeing and collect first day covers.