Can an LLC start another LLC lookup [With Tutorial]

Last updated : Aug 12, 2022

Can an LLC own multiple LLCs?

Yes. There are two ways in which an LLC may own another LLC: An LLC may own multiple, single-member LLCs—this is called a holding company structure; or. An LLC may serve as the master entity and own a series of LLC cells, should state statute offer this option.

Can One LLC fund another LLC?

Yes, an LLC can own 50% of another LLC - it can also own 100% or 1%. This is referred to as a parent or holding company which is designed to invest in other companies. One LLC can fund another LLC either via an equity investment or a loan.

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 list multiple businesses 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.

Can I use one EIN for multiple businesses?

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.

How many LLCs can you have?

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.

Can 2 businesses have the same address?

There's nothing wrong with multiple businesses sharing an address.

How do you structure multiple businesses?

Generally speaking, there are three different ways to structure multiple businesses: one can create individual corporations/LLCs/partnerships for each business, create fictitious names/DBAs under one corporation/LLC, or a holding company can be formed in which all businesses operate under.

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 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.

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 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.

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.

Do I need multiple LLCs for multiple businesses?

Yes, you can have multiple businesses under one LLC, but there are other options to consider depending on your business scenario. Whether you are expanding your business, restructuring, or perhaps taking on an entirely different segment or focus area, there are different ways to structure your LLC.

Do I need a new EIN for each LLC?

You will be required to obtain a new EIN if any of the following statements are true. A new LLC with more than one owner (Multi-member LLC) is formed under state law. A new LLC with one owner (Single Member LLC) is formed under state law and chooses to be taxed as a corporation or an S corporation.

Does your EIN have to match your business name?

The EIN only has to match the "name control" for the company. The name control assigned to a company is normally the first four characters of the name. So, for example, if you formed an LLC and named the company "Real Estate Venture 1, LLC", the name control field would be "REAL".

Can I change my business name and keep my EIN?

If you change your name and business enity structure, you will need to file for a new EIN. File for a new EIN here. If you purchase a business and are keeping the same name and entity structure, but are a new business owner, you will need a new EIN.

Can I change my EIN information?

Identify the information that has changed (LLC name, removal or addition of owners, address/location of the LLC). All other changes should be mailed to the IRS based on the state the entity's principal business, office or agency is located. The IRS will send a letter confirming receipt of your updated information.

Can you have multiple businesses under one sole proprietorship?

When it comes to a sole proprietorship, it is required to only need one DBA. Being able to apply for multiple DBAs under a sole proprietorship depends on how many your local/state government will allow. Each filing of a DBA costs money, so registering multiple DBAs may be unnecessary for what you need.

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hey this is attorney Elizabeth potts-weinstein and today we're going to talk about whether or not you can have multiple businesses under just one LLC an LLC or limited liability company is a business entity that you can form to protect yourself personally from liability issues of your business and there's also some other benefits about taxes and things like that now if you form an LLC there are certain costs that go into form of the LLC maintaining it paying franchise fee taxes all this kind of stuff so you may Wonder well if I have a new project a new website I have this YouTube channel I'm doing some Consulting work I'm selling a new product over here do I need to form LLCs for all these different projects the short answer is you can put all your different projects under one LLC but there are times where you don't want to so let's break that down if you put all your various projects under one LLC there are definitely benefits to doing that fewer costs because you're setting up one LLC less hassle because all the forms and all the stuff that you need to file and create you only got to do that one time all the expenses are put together so they can all share the same accounts and services and software and all that kind of stuff and there are some tax benefits to putting everything together if one of the businesses has a loss that gets wrapped into the other business that makes a profit and so it looks like you're not making as much money because the bottom line is you're not taking home any more money so it makes sense that you're paying fewer taxes however there are a couple problems with having everything in the same LLC for first you have to have the same ownership structure for those various projects perhaps this one project over here you're Consulting you're doing completely on your own over here this website business you're in a venture with a friend and so having that all in the same legal entity doesn't make a lot of sense the next aspect is that all these projects are inside the same LLC so they're all liable to each other so let's say you have one project where you're taking on a lot of debt there's a lot of inventory and it loses money it goes under and then your project over here that does awesome is making all kinds of money and is making you a profit for you to take home it's actually liable for this business so you can't just file bankruptcy and have this business go under this business has to pay off the debts of this other business and that may not be what you're looking for in certain situations so when does it make sense to have one LLC with all your projects in it first there's only one owner it's just you the project are relatively low risk so you're not taking on debt you're not likely to get sued so you're not really worried about the liability issue for the projects to each other third is that a lot of these projects are kind of new experimental ideas that you're working on and it doesn't make sense to do the expense of forming a new LLC and last you want the tax benefit of putting everything together you've talked to your tax person and that makes sense in your situation when do you not want to put them all together in one LLC first is the ownership structure is different that's just not going to work it's not going to be practical second is if one of the businesses is high risk it's taking a lot of debt it has a lot of inventory it has a lot of employees there's potential litigation issues because the kind of industry you're in you want to keep that separate from your other projects third if you want to sell off part of the business if there's one of your projects that you're developing to sell to a bigger company you're going to eventually want that to be separate you don't have to start out with it being separate but you're eventually going to want to spit it off so it can be sold as a separate project and lastly there can be tax benefits to having your various projects in different LLCs that's kind of beyond the scope of this video the exact tax benefits and it really depends upon the exact businesses you have sometimes splitting off real estate or the business that has employed a lot of employees or the business that owns all the intellectual property there can be great tax reasons to split off at even parts of a business or entire businesses from each other they can then do transactions with each other and do all kinds of creative tax things but that has to make sense in your particular situation so you want to talk to your Tax Advisor about that again this is Elizabeth Potts Weinstein if you have any questions about whether having just one LLC is a good idea in your situation feel free to ask them below and I will try to point you in the right direction thumbs up if you found this video helpful and subscribe if you'd like any more tips for small business owners thanks a lot for watching bye

Thanks for your comment Malka Carnohan, have a nice day.
- Virgil Isgrigg, Staff Member

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 Nelson your participation is very much appreciated
- Virgil Isgrigg

About the author

Virgil Isgrigg

I've studied logic at University of Arkansas at Little Rock in Little Rock and I am an expert in universal algebra. I usually feel discontent. My previous job was fitness trainer I held this position for 2 years, I love talking about whale watching and adult sport leagues. Huge fan of Gary Vaynerchuk I practice croquet and collect paper currency.