can i use my llc for any business without investment [Fact Checked]

Last updated : Aug 1, 2022
Written by : Mercy Golen
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can i use my llc for any business without investment

Can I use the same LLC for multiple businesses?

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.

Should I invest personally or through an LLC?

Benefits of an Investment LLC Taxes: When you invest as an individual, you will pay taxes on all sources of your income, including earnings from stock dividends and capital gains. LLCs do not pay federal income taxes, so when an owner makes investments through an LLC, they lessen their tax obligations.

Can I invest using my LLC?

Setting up an LLC allows you to invest in stocks, bonds, mutual funds, real estate, and other opportunities. You can either set up an investment LLC yourself or use a registered agent, who will do most of the work (like filing paperwork with the state) for you.

What is a disadvantage of an LLC?

Disadvantages of creating an LLC States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

How do I put 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 2 businesses have the same address?

While no official guideline forbids listing multiple SABs — like plumbers and locksmiths — at the same location, it's not considered an industry best practice to do so.

Can I fund my LLC with personal money?

Forms of LLC Capital Contributions If your capital contribution will be in the form of cash, making the contribution is generally as easy as making out a check from your personal funds to the LLC.

How does an LLC avoid paying taxes?

A general Corporation making a Subchapter “S” Election or an LLC with or without a Subchapter S Election pays no federal tax on its taxable income and no employment taxes on its distributions to stockholders.

Can you day trade under an LLC?

As a day trader, you can form an S corporation, C corporation or LLC. Whether it's worth it depends on your specific financial situation. If you want to self-incorporate, it's essential you can prove to the IRS you're a trading business, not just an investor.

What can LLCs invest in?

They can invest in stocks, bonds, mutual funds, real estate, and other opportunities. Thanks to the operating agreement, there will be no ambiguity or confusion about how it works. Some of the issues covered in an operating agreement include: The procedure for LLC members selling their shares of the company.

How do you trade under a LLC?

  1. Select a state.
  2. Name your business.
  3. Choose a registered agent.
  4. File the Articles of Organization.
  5. Create an operating agreement.
  6. Get a free Employer Identification Number (EIN)
  7. Get a business bank account.

What are the benefits of an LLC?

  • Limited Personal Liability.
  • Less Paperwork.
  • Tax Advantages of an LLC.
  • Ownership Flexibility.
  • Management Flexibility.
  • Flexible Profit Distributions.

Why an LLC is the best option?

An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits.

Why are LLC so popular?

Limited Liability The key advantage of an LLC for small business is it protects business owners' personal assets from a company's debts, as would a corporation.

How does a LLC raise capital?

Raising capital for your LLC through the equity route means selling ownership stakes in your business. While the official term for LLC owners is members, for your LLC small business you can think of raising equity capital as either bringing on partners with cash to contribute, or having investors in your business.

Can I use the same EIN number for 2 businesses?

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.

What is it called when you own multiple businesses?

Key Takeaways. 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 add another business to an LLC?

As I mentioned earlier, one option for running multiple businesses under a single LLC is to set up DBAs (fictitious names) for additional lines of business or locations. Different government agencies have different names for their form to file a DBA.

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.

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.

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can i use my llc for any business without investment

Comment by Abel Freudiger

hey guys this is robert with malaya law we help entrepreneurs just like you start their businesses without dealing with the complicated legal forms we are also the number one highest rated business law firm for entrepreneurs with more than 1 500 five-star google reviews today we are going to talk about whether you need to file a tax return for your llc if you are not conducting business that year so i'm sure many of you guys have started an llc and realized that you have a lot of work to do before you can collect payments or make money and when this happens you are likely wondering whether you have to file a tax return even though your business made no money that year first i would like to inform you though that i am not an accountant and this is not accounting advice you should reach out to a to an accountant or a professional to get your tax questions answered and what i say in this video is very general information and may not apply to your particular situation but with that being said it is possible that your llc will still be required to file a tax return even though it was inactive that year or did not make any money that year so ultimately it all depends on whether your llc was taxed as a partnership a disregarded entity or a corporation so it basically all boils down to how your llc is being taxed so if your llc is a disregarded entity then you are required to report any income on your personal tax return and there is likely little to no extra filings that you have to do other than your regular personal tax return the llc's income and expenses are reported as self-employment income on the schedule c of the llc member's personal tax return you will be required to file this schedule c if your llc made more than four hundred dollars for the year if you made less than four hundred dollars and you do not have any expenses that you would like to deduct then you will not have to file a schedule c however if the llc has more than one member then the llc will automatically treat it as a partnership or instead of being taxed as a partnership you may elect for it to be taxed as a corporation so check your documents to see how your multi-member llc was registered and taxed if the llc was formed and it was automatically designated as a partnership then the llc will have to file a partnership tax return regardless of how much money you made additionally each member of the llc will have to also report the income on his personal tax returns so ultimately the llc must file a partnership tax return on tax form 1065 unless it did not receive any income that year and you do not have any expenses that you plan to write off or claim as a deduction or credit so in summary if your llc was taxed as a partnership and made no money and did not have any expenses that you plan on writing off then the llc probably does not have to file a partnership tax return now if your llc filed form 8832 with the irs which is the document that you must file to have the llc taxed as a as a corporation then the llc is required to file a tax return even if it made no money and no business was engaged in so overall it is likely that you will have to file a tax return or deal with something related to taxes even if your llc did not make money that year and despite having little to no income i always recommend that you speak to a tax professional who can advise you and handle your taxes for you so uh yeah i understand that starting a business can be challenging and many entrepreneurs let the fear stop them from continuing or moving forward but don't let that be you click on the link below to schedule a free consultation with us to discuss your legal needs and while i can't give you tax advice i can provide you with legal advice on how to start your us business and i can put you in contact with other professionals who can help you if i'm not able to do so so click on the link below to schedule a free consultation with me or my team and we will be able to help you grow your business and launch your us business without having to deal with the complicated legal forms and yes so go ahead and click the link below and also if you have any questions just post them in the comments below and my team and i will try to get to them as soon as we can see you guys in the next video bye-bye

Thanks for your comment Abel Freudiger, have a nice day.
- Mercy Golen, Staff Member

Comment by guri2

congratulations on wanting to start a new business so i don't want to see you paying for these things even though others try to upcharge you so you can get an ein an employer identification number for free also you can file your llc as s-corp status for free and that's a special tax status that you can get that can save you a lot of money down the line also banking resolution templates you can find that online as well as the banking resolution templates you can find business contract templates as well as the operating agreement online plus the business plan which is going to help you get everything organized so get your free things don't pay for them and thanks for coming to darcy's business

Thanks guri2 your participation is very much appreciated
- Mercy Golen

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