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Examples Of Holding Company Names – You have amazing ideas for a new business. You’re ready to incorporate a company to protect yourself and your personal assets and have decided it’s time to take the next step and create an LLC holding company for your various endeavors. Then the questions arise: what type of business can I conduct with my LLC? How many different businesses can I run under one LLC? Should I configure DBAs? Should I create a separate LLC for each project? Is a series LLC right for me or should I stick with multiple traditional LLCs? By now it is common knowledge that Delaware is the gold standard when it comes to forming an LLC, LP or corporation. The Delaware LLC is by far the most popular type of legal entity for most startup entrepreneurs. As a result, people often wonder if they can manage multiple LLCs under one LLC holding company. Structuring Multiple Businesses Under One Umbrella LLC Can you have multiple businesses under one LLC? For example, let’s say a business owner has a trucking business registered as an LLC, but after some time he/she may also want to offer real estate services. These are two completely different types of businesses, which raises the question of whether the owner can provide both services under one LLC. Naturally, one of the considerations for owning multiple businesses is to avoid the added costs of running another LLC. Answer: Yes: it is possible and acceptable to operate several businesses under one LLC roof. Many entrepreneurs who decide to do this use what is called a Fictitious Name Statement, or DBA (also known as Doing Business), to operate an additional business under a different name. However, just because it is legal and possible to operate multiple businesses within a single LLC or corporation does not mean you should do so, as there may be disadvantages. For example, if a lawsuit is filed against one of the businesses, the assets of others may be at risk. As a result, you expose yourself to a higher risk of liability. In other words, if one of the divisions (enterprises) in an LLC were held liable, then the entire LLC could be held liable. As the old saying goes, “Don’t put all your eggs in one basket.” Instead, many people choose to register a new LLC for each of their startups. Owning multiple businesses under separate LLCs isolates risk by separating the debts and obligations of each business. Think of individual entities as helping to build a big brick wall between each LLC. Of course, there are additional service fees, but they may be worth it to protect your business and provide the peace of mind that an LLC will be able to afford. What about Seria LLC? Some people choose a low-cost series LLC when they want to operate several different businesses, which is very tempting since Delaware only charges one annual franchise tax payment and one annual registered agent fee. However, the structure of this business entity is relatively new and untested, so many obstacles often arise when working with a serial LLC. Many service providers, banks, lawyers, accountants and other businesses are still unfamiliar with the concept of the series. It often takes time to explain the concept of the series and to obtain approval of the necessary documentation, for example from the bank’s lending group. It is generally believed that it is safer and smarter to keep your business ventures completely separate from each other, creating an LLC for each aspect of the business; Essentially, you create one Delaware LLC as a holding company and other separate LLCs within it, but separate from it. Separate LLCs for Separate Businesses Today, the battle-tested practice of creating separate LLCs created for each business option has traditionally continued to be the most recommended strategy by tax professionals, lawyers and business consultants around the world. . This means that for every business sector, for every product line, for every service provided, for every property, clients often consider forming separate traditional LLCs. For people who own multiple businesses, this ensures that the assets, debts and liabilities of each LLC are completely disconnected and protected from each other in the event of any potential litigation. When creating multiple LLCs, it can be extremely helpful to develop a project hierarchy that matches the relationships of the respective LLCs. For example, people commonly form numerous LLCs for real estate development. This structure often consists of a single parent LLC at the top of the hierarchy—let’s call it ABC Holding Company, LLC. People then usually create several subsidiary LLCs, one for each property – let’s call them ABC Real Estate 1, LLC; ABC Real Estate 2 LLC; and ABC Real Estate 3, LLC. Each LLC can own, manage and be responsible for one piece of real estate; thus, although all LLCs have the same holding company – ABC Holding Company, LLC – and may have similar structures, ownership interests, assets and liabilities, they are isolated and ring-fenced from each other to protect the property and resources of each individual. OOO. LLC holding companies in Delaware are also considered a smart, strategic way to further protect your personal assets from your LLCs. If you would like more information or have any questions about forming your own companies or adding another business under a parent LLC, please contact us by phone (800-345-2677), Skype(), email or in chat. One of our experienced business startup specialists will be happy to help you. Next: How to create and use a database administrator
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm, and even where the author is an attorney or tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary and analysis of the topic at hand. We strongly recommend that you consult with an attorney or tax professional to obtain legal or tax advice tailored to your specific circumstances. Any actions taken or not taken on the basis of this article are taken at your own risk. If an article quotes or provides links to third party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding the content or accuracy of such source. The views expressed in this article do not necessarily reflect the views of Harvard Business Services, Inc.
Examples Of Holding Company Names
I have an LLC and wanted to open another business unrelated to my first business. I believe I can apply for a DBA degree and run this business as part of the former. However, I was thinking about keeping them separate by going solo and then getting an EIN for the second business. How can I get a “dba” trade name for a sole trader? It seems that the only way to register a “dba” trade name is to register it under another entity or under your own LLC.
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Thank you for reading our blog and for your question. As a rule, you will register separate LLCs for each individual organization so that all your eggs are not in one basket. A representative from our office will contact you to provide you with additional information and help answer any questions you may have.
Hello, I am a homeowner of four properties. By chance, I can advise which type of LLC I recommend. I will also be purchasing property in a neighboring state. Do I need to form another LLC in this state? Thank you, Stephanie.
Thank you for reading our blog and for your question. We will be happy to assist you with your question and will contact you shortly for further assistance.
Hello! Thank you very much for the article. I plan to start a laundromat business as an LLC and hope to own several businesses. However, I also have a DBA, can I use the DBA for banking purposes as an LLC, but have each potential laundromat have its own LLC, separate from the DBA. Or will I need to have completely different accounts for each business under a separate LLC?
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Thank you for reading our blog and for your question. One of our representatives will be happy to contact you and explain all this in detail.
Hello, my name is Precious. Thanks for the article, really informative. I currently have a company that offers services, but I want to start another company that deals with products. Are you suggesting that I instead trademark all of my businesses or should I open an LLC for all of them using my current business as the parent company?
We would be happy to contact you to discuss your questions further. One of our representatives will contact you shortly.
Hello. I found your site very informative. My question is that I founded an LLC that is in the process of becoming a non-profit corporation. A good friend wants to start a for-profit business completely unrelated to my original LLC.
