Today’s small business owners often earn income through a variety of ventures. For example, a restaurateur may open a wine shop or a caterer may also double as a part-time copy editor.
If you’re running multiple business projects, you’ve probably wondered what’s the best way to structure all these ventures. Should you form one corporation to cover them all? Should you form an LLC for each one?
You need to answer these questions from both a marketing and legal perspective. For marketing, you need to consider the markets and target customers for each venture. Are they synergistic? Are they relevant and will they appeal to the same customer?
If so, it makes sense to market them under a shared brand. For example, it may make sense for a restaurant and side wine shop to share the same branding.
In other cases, your businesses might target different customer types (for example, the copy editor and caterer). In this case, you want to use different websites, business names and branding for each venture.
But how do you structure multiple business ventures from a legal perspective?
How to Structure Multiple Businesses
There are three ways to legally structure multiple businesses. Each option has a different set of advantages and disadvantages – and the “right” approach depends on your unique needs. Here’s what to consider:
Option 1: Create a Separate Corporation or LLC for Each Venture
You can form an LLC or corporation for each business venture. For example, you can form an LLC for a bookkeeping business and then form another LLC for selling homemade soaps.
While this seems straightforward enough, be aware that this approach will result in considerable paperwork. You’ll need to file separate forms (i.e. annual reports, meeting minutes) to the state for each structure. And if you’ve formed corporations, you’ll need to file separate tax forms for each corporation. If you’re looking to minimize your administrative requirements, consider another option.
There’s one exception to this rule and that’s for real estate investors. If you’re investing in rental properties or other real estate, you may want to consider forming an LLC for each property in order to protect each investment on its own. Then if property “A” is sued, only the assets belonging to LLC “A” are affected. Your own personal assets are shielded, as well as the assets belonging to Property B, Property C, etc.
This is the best way to contain liability in potentially risky ventures.
Option 2: Create One Corporation/LLC and Have Multiple DBAs Under the Main Corp/LLC
Your second option is to create one main company as an LLC or corporation. Once that LLC or corporation has been established, it files multiple fictitious business names, also called DBA (doing business as) registrations, for each of the ventures within the same state/county.
With this approach, each business can have the right name and branding for their specific market, while still enjoying the legal protection of the main holding company. When it’s time to file your taxes, you can take the income earned from each DBA and report them in a single tax filing under the main LLC or corporation.
Of course, situations vary and you should always consult with an attorney or tax advisor for individual advice regarding your particular situation.
3. Create One Corporation/LLC with Other Corporations or LLCs Under the Main Holding Company
In the third approach, a holding company will own individual Corporations/LLCs for your multiple businesses. This scenario often comes into play for companies that are looking to be acquired. It also applies for those cases where an established company is looking to start a new business (and the established or holding company will fund the new business).
The particular tax and legal implications can become complex for this scenario. Consult with a tax advisor and/or attorney for the best way to structure your holding company and its subsidiaries.
Final Thought
Consider this overview of how to structure multiple businesses as just a starting point. And if you’re working hard to build your businesses, make sure you’re also doing everything you can to protect them.
Multiple Businesses Photo via Shutterstock
CorpNet offers business formations, filings, state tax registrations, and corporate compliance services in all 50 states. Express and 24 hour rush filing services available upon request. Click here to learn more.
Ti Roberts
Great tips. It’s important to know the proper process for setting up several businesses. You’ve laid out a clear and concise outline. Thanks for sharing with us.
Ti
Emma
Hi, thanks for this info. Would appreciate your take on this situation:
I can’t decide between 2 unrelated businesses that I want to start (consulting business & specialty clothing line) so I’d like to just set up one DBA as a sole proprietor, get a EIN and then do both parallel for a limited time (maybe 1 yr). My goal is to pursue the one that shows the most promise & drop the other. So can I legally have one DBA doing different business activities or will that be against IRS rules?
A'DJ
moderator, will you answer?
Hi Emma and A’DJ –
Sorry for the delay here. Great question. Generally it’s up to the business owner how they’d like to structure their business, however usually if the business will be doing two different things, they will be set up as separate entities. One very common way of doing this is setting up a parent company as a corporation or LLC, and then having multiple DBAs filed underneath. If you have any additional questions, my company specializes in business filings. Feel free to call our business consultant Katie Hendrix for a free business consultation at 888-449-2638 x110.
-Nellie
This information was spot on and well presented. It has provided me with the information I was seeking. Thanks.
Continue your great work!!!
Kind regards,
Colin.
Hi Colin –
Thanks so much for reading my post and commenting! Happy to hear the information is helpful!
-Nellie
Adyre
I already have an LLC for my event planning company. I am looking to branch into other business ventures unrelated to event planning. I was reading the article “How To Set Up and Structure Multiple Businesses” and I believe that option 2 “Option 2: Create One Corporation/LLC and Have Multiple DBAs Under the Main Corp/LLC” might be best for me. However, does that mean I should create a new “parent company” and then make my existing company a DBA? Or should I change the name of my existing company to make it the “parent” and then make my existing and new company DBAs under that?
Hi Adyre –
Thank you for reading my post and commenting! To answer your question, generally speaking, people in your line of work often create one corporation or LLC. They typically go the S Corporation route or the LLC route and then they have the Corp or LLC file a DBA doing business under different type of business they will be conducting.
I hope that helps!
-Nellie
Adyre
Thanks Nellie. But I am still a little confused. Currently I have an LLC, for sake of example we’ll call it “A LLC.” I am looking to venture into a totally unrelated business as well, we’ll call that “B” and I have created no company structure or official name for it yet as registered with the state. Do I create a separate LLC so that now I own A LLC and B LLC or do I change the name of my current LLC to, say “Adyre’s LLC” and then make A and B DBAs?
Hi Adyre –
Sorry for the delay. I just saw your comment. Great question. Both scenarios you outlined here are very common. It could be done either way – it just depends on how you as the owner would prefer to have your businesses structured. If you have any additional questions, my company specializes in business filings. Feel free to call our business consultant Katie Hendrix for a free business consultation at 888-449-2638 x110.
-Nellie
Suzanne Livingstone
Hello. you’re 2nd option makes much more sense to me now. I had been considering sole proprietorship but I am wanting to do 2-3 different “small” online companies and not combine them together, so that would make more sense
With a LLC do you only need the one business license then and then like you said a DBA for each of the individual website/companies
thanks
Hi Suzanne,
Each individual LLC would have its own separate documentation (i.e. Business licenses, DBAs etc.) Depending on the nature of the business each separate DBA may need its own business license as well. I hope this helps. Please let me know if you have any other questions and I would love to assist!
-Nellie
Candace
I have two real estate properties and I am looking to establish a third. I would like to create a LLC or S-Corp with DBA’s. I notice that the S-Corp required much more paperwork however is less in taxes. How do you decide if the LLC or the S-Corp is a better choice?
Hi Candace –
Thanks for reading and commenting!
Here’s another post I wrote for Small Business Trends that discusses the differences between the LLC and S Corporation that may help you: https://smallbiztrends.com/2011/03/s-corp-versus-llc.html
-Nellie
Becky
Thank you so much for this. I am currently brainstorming ideas for future businesses. I currently own one business and I just started an organizing blog. In the next year or so I want to open up my own professional organizing business. I also have other ideas for the next 5 to 10 years. This article is now bookmarked and I will use it as a reference.
Thank you
Hi Becky –
So glad my post could help you!! Best of luck on your ventures and if you have any questions, feel free to reach out anytime and I am happy to assist!! I’m always on Twitter and available to answer Qs! Twitter.com/CorpNetNellie 🙂
Dustin
Whats the best practice for setting up entities when multiple store fronts are going be involved (same line of business). An example would be like a massage envy or joint chiropractic franchise.
Would each store front be a separate LLC along with an Operating LLC (with no ownership). That way if a given store front is having problems they can close that shop down without affecting others (having to break leases, etc)
Hi Dustin,
The way you structure your business is up to you, however the example you gave is very common. We see a lot of business owners setting up a “parent” LLC and filing multiple entities underneath that LLC (making the parent LLC own all subsidiaries).
I hope that helps!
-Nellie
Ian
In the 3rd scenario “3. Create One Corporation/LLC with Other Corporations or LLCs Under the Main Holding Company”
Does the main holding corporation profit from the corporations or LLCs under it?
Do you have any resources I could read about that topic?
Hi Ian –
Thanks for reading my post and commenting! The answer to your question really depends on how you pay your taxes and how you structure the take in of fees. Unfortunately it is more of a tax question that should be asked to your CPA or tax advisor.
Sorry I couldn’t be of more help!
-Nellie
Tom @ Driving School
Hi,
Nellie, I own a driving school and when I started my plan was to only service customers in the Brooklyn area and so I used my city name in the name of my school. What do you suggest if I wanted to market my services in other cities. My business is setup as an LLC. Do I need to create a new LLC or can I use my existing LLC and work under an assumed name.
Regards,
Tom
Hi Tom,
Great question – what a lot of business owners often do in your situation is set up a DBA (or assumed name). If you have another business name you’d like to be able to use (as well as your current business name), filing a DBA will allow you to do so. Hope that helps!
-Nellie
Amirah
Hi Nellie, I have been planning events and recently started making custom cakes. I would like to know how I would be able to do both legally from home under the same LLC. Do you think that choosing one over the other is a better idea?
Thanks
Hi Amirah,
Many business owners will set up an LLC, with a DBA (or Doing Business As) registered underneath so they are able to use 2 different names under the LLC. For example, a business owner could file an LLC for ABC Event Planning, and file a DBA underneath for ABC Cakes. This way, the name can be advertised either way. Hope that helps!
-Nellie
bill
Can a 501(c)3 non profit D/b/a x corp sign a lease and then a same non profit sign a lease as a profit corp d/b/a as x corp
Hi Bill,
Thank you for reading and commenting on my post. Unfortunately I cannot provide you with specific legal advice for your situation. I recommend contacting an attorney for your query.
-Nellie
Roger
Hi Nellie,
I am the sole proprietor of 3 LLC’s, Event Planning/Venue, Wedding Planning, and Photography. I prefer to keep them as LLC’s and not change any to DBA’s. Customers know that the Wedding Planning and Photography are offered on the Event Planning/Venue and this year I setup only 1 checking account, under the Event Planning/Venue EIN, and have customers make payment to that name and all accounting is simplified by all being together and I have no personal desire to separate details. Thus, on my next Schedule C I plan to only have that one EIN. Does that seem good to you also?
Hi Roger –
Thank you for reading and commenting on my post.
Unfortunately I cannot provide specific legal/tax advice in response to your question. Sorry about that.
-Nellie
Phillip M.
Nellie,
Well done article as there is little of this information out there for ‘serial entrepreneurship under one managing roof’. In this consideration, when someone is developing a formation strategy, between a managing llc or s-corp with separate dba filings *or* a bona fide holding company (llc or s corp) that holds separate llc ‘ s (can a holding company file dba’s?), how is legal liability generally assigned. For example, does a managing llc assume all of the liabilities of the dbas, or does each dba have its own separate granted liability separate from the managing llc where the other’s within the group would remain unaffected.
For the holding company example, I am assuming that each llc filed would retain their own liabilities. Is that the correct general idea (I’m exploring these for info before my legal appts.)? Let’s say the holding company wishes to share some technology or funding reallocation between subsidiaries as may be necessary. Do you know if that changes the terms of the formation or is that mainly just about proper documentation and filing.
Can dba’s be converted to llc ‘s and vice versa as an occasion/need may warrant. I know that the lines get blurry here as adaptive business practices sometimes call for these sorts of changes, but just wanted to get your thoughts on these things that might be useful info for other readers (and to give me a bit more information before my legal and tax appts next month).
Many thanks, and many kudos to your informative blog!
Hi Phillip –
Thank you for reading and commenting on my post. I’m glad you found the information useful.
Unfortunately DBAs cannot be converted to LLCs or vice versa. Generally, when a business owner is operating a DBA and wants to switch to an LLC, they will simply start a new LLC from scratch.
I would suggest consulting an attorney to get information regarding your specific situation.
Thanks
-Nellie
Hi Nellie,
So much appreciated effort, i’m having 2 llc’s and a sole proprietorship under 3 separate dba”s how can i use them all under one holding company ? or is it better to have each one separate on it’s own?
Hi Sarah,
Structuring your business can be a confusing process – many people will file a corporation or LLC and file several DBAs underneath that entity. The way this is done is when filing the DBAs, the LLC will be listed as the owner. This way, the business will be able to do business using the LLC name or any of the DBA names. If you need any assistance or have any additional questions, my company CorpNet can help – please call our office for a free business consultation: 888-449-2638, ask directly for Katie Hendrix at x110.
-Nellie
eric
Ok. One other question. If you go with route 2, would you need separate EIN numbers for each dba?
Hi Eric,
DBAs are not required to hold EIN numbers – it’s optional, as the owner can also use their personal Social Security Number. DBAs that are filed under a corporation or an LLC typically do not obtain EINs, because they fall under another entity with its own EIN.
-Nellie
Tracy M
I manager an INC business. We are considering adding a 2nd location in the same City, but under a different township. Would the new location need to be set up as a separate business, or is there a way to have them under the same business just with two different locations? We want to be able to move staff between locations, and plan to have the same clientele database at each, and only have one set of “books”
Hi Tracy,
I would recommend speaking with an attorney regarding this matter as it appears you need some legal advice. Generally, as long as the business is being conducted within the same state, usually there are no additional steps that need to take place. However, every state and every circumstance are different, so I would recommend getting some legal advice. If you do not currently have a business attorney, my company CorpNet.com offers an affordable legal plan that could work for you. However, right now we offer it in select states. Please take a look and if we offer it in the state you are in, feel free to touch base 🙂 http://bit.ly/TB9bbj
Milly
Hello Nellie, I am opening a couple of different online businesses and I am hoping to sell one of them in the future. I have decided to have 1 LLC and multiple DBA, but I was wondering if it is possible to change from option 2 to option 3 (holding company)? Thank you!
Hi Milly,
Thank you for your question! If you’d like to structure the business as an LLC with multiple DBAs underneath, it is possible in the future to change the structure to an LLC with multiple LLCs/coporations underneath instead. LLCs/corporations can be formed in place of the DBAs, and eventually the DBAs will become inactive. If you have any other questions or would like assistance with your business filings, please contact Katie Hendrix in my office for a free business consultation at 888-449-2638 x110.
Maggie
Hi Nellie,
Really appreciate your time and dedication to this subject. We (my husband and I) currently own a Creative Ad agency which is established for 10 years. The business is registered as an S- corp with 100% shares in my husbands name. We are opening another business with related, yet different offerings. This company will need to have it’s own name, bank account and option to include additional shareholders ( myself and eventually my brother who will work to acquire shares over time). We would like to be able to use the established business credit and tenure but want to separate all financial/ ownership subjects between the two businesses. Do you recommend a DBA for the new business, a subsidiary or a completely new company unrelated ( which will not give us the benefits from the existing co’s tenure). Thank in advance for your help! – Maggie
Hi Maggie,
I would definitely recommend seeking some legal advice as to how to set up your new entity. It can get tricky when needing to add additional shareholders and separating finances. If you would like assistance in registering your new entity, please feel free to call Katie Hendrix in my office at 888-449-2638 x110, and she would be happy to offer you a free business consultation!
Todd
I currently have an LLC with 2 dba’s. My niece wants to start a business, it is entirely different from my other business and I have no stake in the game nor will I receive any benefit. Would operating under mine cause me to be liable for her taxes and would I have to claim her income, if any? Or would it be best for her to create her own?
Hi Todd,
Thanks for reading and commenting. Generally, if the businesses are not linked, they are kept separate. As far as who is liable for what taxes, etc. I would recommend speaking directly with an accountant or CPA as they would best be able to guide you as to which would be best for your situation in particular.
Mark
I currently own a game store and looking to open another and I’m looking to pull in a partner for the second location only but use the same L.L.C is this possible and how show I go about it?
Hi Mark,
This process can be kind of tricky. You have a few options – I’d love to offer you a free business consultation to discuss these options. Please feel free to contact Katie Hendrix in my office at 888-449-2638 x110, and she will go over the process with you.
Greg
Hi Nellie,
Great post!! I’m considering forming one LLC with multiples DBA’s under it. Just curious how that affects general liability.
If someone takes action against one of the DBA names I’m assuming all the assets of the holding LCC are subject to loss regardless of begin under a different DBA name. Is this true?
Would you comment?
Kindly,
Greg
Hi Greg,
Thanks for reading and commenting! Glad you enjoyed the post!
In regards to your question, generally speaking, when a DBA or multiple DBAs are filed underneath a corporation or LLC, they are under the protection of that entity. As far as liability protection specific to your company, I would recommend speaking with an attorney.
Hope that helps!
Nellie
bola
Hi,
I would like to open a vitamin retail store, and I already have a golf retail store. I already have an LLC thats has the word Golf on it. Should i form a new llc for the new store or create a DBA with a new relevant name, benefits and cons please, thank you so much !!
Hi Bola,
Great question. Generally a DBA is basically considered a nickname for the LLC. Usually if the company will be doing something totally different from the existing LLC, it will be filed as a brand new corporation or LLC, rather than just a DBA. If you have any questions or would like any assistance with filing an LLC, please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110.
Robert
Nellie – Will be owning up to 10 restaurants (different locations within same city, different cities and possibly 3 different states). Knowing the assumption above and wanting to reduce risk as well as for reporting purposes, what is the best scenario. Additionally, is the parent LLC and DBA or “additional Corps” registered with each state? Also, what if there is a different investor in each restaurant that does not want to be named in the Parent LLC and vice versa.
Thanks and a lot in this series of questions.
Bob
Hi Robert,
Generally an LLC will be required to foreign qualify in every state in which they have a physical presence. Because your situation is a little unique, I would recommend speaking with Katie Hendrix in my office for a free business consultation and she can lay out your options for you. She can be reached directly at 888.449.2638 x110.
Kristen
Hi there,
I was hoping you could answer this for me.
I currently have an etsy shop/ecommerce with a DBA and it’s own license & sales permit.
However, I would like to tutor on the side (for which I have done for years under someone else’s company) on my own. I plan on just using my name, so I do not need a DBA, but I will get a license.
Can I file these both for taxes under my social or should I get a tax ID for one of them?
Thanks!
Hi Kristen,
I would definitely recommend speaking with an accountant or CPA as they would best be able to recommend what would be best for you and your business from a tax standpoint. If you have any other questions or need assistance with applying for a Federal Tax ID, please contact Katie Hendrix in my office at 888.449.2638 x110.
Norma
I very much enjoyed your post and every one’s comments.
My scenario is as follows: I have a lingerie retail store for which I already formed a General Corporation. I am planning to open a second one of the same line of business and in the same shopping center where the other is located. What do you recommend? Open a new corporation? Or file for a DBA?
Many Thanks!
Hi Norma,
You actually have an option – it can be done either way. There are pros and cons to both. If you’d like I can have you speak with Katie Hendrix in my office for a free business consultation. She can outline your options for you, and if you like she can even assist you with the filings. She can be reached at 888-449-2638 x110.
Sue
Hi Nellie,
My husband, mother in law and I own a few real estate investment properties in 2 different states. Our CPA recommended that we get a business license LLC. However, I’m also looking into opening a counseling/psychotherapy private practice. I was considering the option 2 you mentioned above and filing for a DBA for my private practice under a fitting name of course and also getting an EIN. I’m hoping this would work since my husband is best at managing these sort of things. But does this make sense and is it a smart move for the long run? Would love your feedback:)
Thank You!
Hi Sue,
Great question. There are several options a business owner has as far as structuring their business, and the pros and cons vary depending on the type of business, state, etc. I would recommend contacting Katie Hendrix in my office for a free business consultation at 888.449.2638 x110. She would be happy to outline your different options for you!
Gweneth Grieve
I am looking to start a couple of enterprises and thanks to this article have a very clear understanding as to structuring from the onset as a Corporation. I am however interested in the branding of these, I would like the entire umbrella as an own brand and then have for example…development, rental etc..do you think this sounds feasible.
Hi Gweneth,
Congratulations on your new venture! Because you do have a few options as far as how to structure this, I would recommend speaking with Katie Hendrix in my office for a free business consultation. You can reach her directly at 888.449.2638 x110. She would be happy to assist you!
Great article! I could see it being a big help to anyone needing info on how add multiple names. But I noticed it only refers to Corps and LLC’s.
I currently own a sole proprietorship photography business filed under a DBA. I am wanting to add a DBA that is my and my wife’s first names (which may not be a DBA???)
What do I need to do?
Thanks in advance!
Hi Jeff,
Thank you for your question! There are a few ways this can be structured. Please contact Katie Hendrix in my office for a free business consultation and she would be happy to outline your options for you. She can be reached at 888.449.2638 x110.
Scott Saunders
Nellie, it seem like the IRS EIN site hiccups every time we try to get a new EIN where we list another LLC as the responsible entity. The site just says “it is unavailable right now. Please try again later.” When we tried multiple times, we always got the same response. Any thoughts as to why and then a possible work around?
Hi Scott,
Generally if another entity is listed as the responsible party, the SS-4 will need to be sent into the IRS as a paper filing, rather than done online. If you need any assistance with this, please contact Katie Hendrix in my office at 888.449.2638 x110, and she’d be happy to get this taken care of for you
Mike
I am planing to starting a home based S-Corp holding company with 2 separate home based LLC companies. Can one owner own all 3 companies.
Hi Mike,
Absolutely. There is no limit to the number of LLCs or corporations a person can own. If you have any other questions or would like assistance with forming these entities, please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110.
Theresa
I am going into business with the man who is designing an app for me. It is an 80/20 split. I predict that we will have at least one other project. He wants a holding company as he says it provides protection. So is it possible to set up the for now the 2 differents dba’s under one LLC as the operating company and then have the holding company over the LLC? Or in this scenario do we need separate LLC’s under the holding company?
Hi Theresa,
Great question! There are actually a few different ways you can choose to structure an entity like this. I would recommend contacting Katie Hendrix in my office for a free business consultation at 888.449.2638 x110, and she would be happy to outline your options for you, and can even assist you with the filings!
Carroll Richie
Greeting, I have a ministry tha is an Inc., a magazine company that is a LLC and i am about to start a church (ministry).
How can I bring everything under one roof:
Carroll Richie Ministries:
– DBA Carroll Riche Ministries
– DBA Fresh Oil Magazine
– DBA 757church
Hi Carroll,
We would love to assist you with this! Please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110. She can outline all your options for you, as well as assist you with getting the filings done.
Patty
Hi Nellie –
thanks for your great posts and advice – this is my question:
I have an LLC (I have just regirstered it and have not started trying to make money with it yet) and want to do a specific business that can fall under my general LLC but I want the name of this specific business to be very different – can I have this as a DBA? My understanding from your advice is that the DBA contains some of the same words but with a variation. So my example is:
If I have “Brand New, LLC” can I have “Bright Lights” as a DBA? The 2nd falls under the category of the LLC but the name is nothing similar.
Can I do that?
Thanks,
Patty
Hi Patty,
Absolutely – this is absolutely something that can be done! This is the exact purpose of a DBA – to give you the rights to use an alternative name. If you would like assistance with filing your DBA or have any additional questions, please contact Katie Hendrix in my office at 888.449.2638 x110.
Andrew Lim
Hi Nellie,
Thank you for this article.
I recently formed a NON-PROFIT Corporation in Nevada. My idea was all my various businesses from now on would be under the umbrella of the non-profit corp. (feeding children of America).
My question is regarding your mention of forming DBAs “within the same state/county”. Do my DBAs have to be filed in Nevada?
Since the non-profit corp was formed in Nevada, can I file/register my DBAs in California? Would there be any obstacles, difficulties , etc. in doing so? Thank you.
–
Andrew
Hi Andrew,
Generally speaking, if the DBA will be filed underneath the corporation, the DBA would need to be registered in the same state as the corporation. If the DBA will not be filed under the corporation, and just as a sole proprietorship, it can be registered anywhere. If you have any further questions or would like assistance with filing your DBA, please contact Katie Hendrix in my office for a free consultation at 888.449.2638 x110.
Gayle
I have an existing practice (PLLC) and am adding a new practice location. If I use the existing PLLC and tax id, and create a new DBA under it for the new office, Is the DBA name the “legal name” I would use for most purposes or would I have to use the name that is registered under the original PLLC/tax id. Many insurances are asking for the “legal” name, but I want the new office to have its own name.
HI Gayle,
Great question. Think of a DBA as sort of a “nick name” for your PLLC. It will allow the company to go by either name interchangeably. If you would like any assistance with filing your DBA, or have any additional questions, please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110.
Tanya
Hi Nellie,
I am a graphic designer that has an LLC that only provides a service online not a product in Colorado, so there are no taxes. Now I want to create a DBA that has a product and I need a resellers license for this Dba. How does work? What is the best way to approach this? The parent doesn’t have taxes, but the dba will.
Hi Tanya,
Please contact Katie Hendrix in my office for a free business consultation. She will be able to assist you with your questions and help you get started with your DBA. She can be reached at 888.449.2638 x110, or by email at [email protected]
Alex
Hi Nellie,
My wife has a DBA already and I would like to create an LLC for us both to each operate our own DBA under. Is it possible to transfer an existing DBA into a new or different LLC?
Does this make sense?
Thanks for any insight.
Alex
Hi Alex,
Thank you for your question. A DBA cannot exactly be converted into an LLC. Generally, the way this is done is to file a new LLC in place of the existing DBA, then file a new DBA to fall underneath the LLC. If you have any additional questions or would like assistance with your LLC and DBA filings, please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110 or by email at [email protected].
Lanette
Nellie –
Thank you for this information it was very helpful for me. I am in Henderson, NV and planning to start an LLC company but was not sure how I could start it with the various services I want to offer such as Apartment Cleaning service, Event Planning, Property Listing and Notary service. So I had thought about starting a main service and doing DBA’s so coming across this article was extremely helpful for me. So for sure 1. Option #2 will be the one I will be going with for my New journey to create jobs and careers for others.
Hi Lanette,
Great question. There are a couple different ways something like this can be structured, but most commonly we see one parent corporation or LLC with multiple DBAs filed underneath. If you have any further questions, or would like assistance with these filings, please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110.
Miriyam
Hi Nellie,
I have a profit business (musician) and non-profit (music school) business. Am I allowed to use the same assets in both chart of accounts?
Hi Miriyam,
I would definitely recommend speaking with a business attorney in regards to this, as they would best be able to assist you with any questions regarding your assets.
Suzi
Hello the scenarios above are very much the same as mine. We have an existing LLC with a real estate business under a DBA I want to add a second business but I am not sure if I add it as a DBA under the current LLC or create a second LLC? I want to protect the existing business from the new company. Will the parent company be financially liable for both DBA’s?
Hi Suzi,
Great question. There are a few ways this could be set up. It may be helpful to get a little more information from you in order to best assist you. Please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110 and she would be happy to go over your options with you!
Curtis Burdines
Hello I work for a corporation that has bought 8 different medical equipment companies. The parent company has one TIN and the companies under the Corp all have differnet TIN’s. How would this corporation align all the TIN’s under this one corporate TIN?
Next in regards to contracts that are already establish, due to the TIN’s being different should the companies now under the parent corp update the TIN to reflect the corporate TIN or should the companies under the corporation change all thier TIN to make the company more cohesive or aligned? Thanks
Hi Curtis,
I would recommend speaking with an accountant or CPA, as they would best be able to assist you with these questions. If there’s anything else you need assistance with, please contact Katie Hendrix in my office for a free business consultation at 888.449.2638 x110.
Gloria
To form a DBA under an existing Corp, do I have to be listed as one of the Officers.
Hi Gloria,
Thanks so much for reading and commenting! Generally speaking, when a DBA is being filed underneath a Corporation or LLC, the officers of the Corporation have no bearing on the DBA. I hope this helps! Thanks again!
Tamara Cederlof
Thank you for the helpful article. I have owned a small online hair accessories business for 10 years. I am thinking of rebranding and changing the name. Will I need to redo the whole process again or can I just keep all of my business stuff under the first business name?
Hi Tamara,
Thanks so much for reading and commenting! Generally speaking, in order to rebrand and change the name depends entirely on the state one is formed in and what type of entity is filed. Please give my company a call at (888) 449-2638 at your earliest convenience to speak with one of our Business Filing Specialists and we can go over how to get this taken care of for you. Thanks so much!
For the purpose of simplicity, I would like to establish a Private Incubator under “Create One LLC and Have Multiple DBAs Under that LLC”.
The intent of the main company (Collaborative Adventures LLC; CollaborativeAdventures.com) is to develop an assortment of social media businesses using a number of my domain assets. As you mentioned, this would certainly allow each business to have the right name and branding for their specific markets. And, I certainly like the idea of being able to do a “single tax filing under the main LLC”.
However, I was unsure as to how they would still enjoy “the legal protection of the main holding company”.
Is this really possible for DBAs that are all under the one LLC umbrella ?
Hi David,
Thanks so much for reading and commenting! Generally speaking, DBAs, when filed under an LLC or Corporation, have the liability protection from that entity that is considered the DBAs “owner”. This protects the personal assets of the owners of the LLC or Corporation. If you have any additional questions in regards to this, please do not hesitate to reach out to one of my Business Filing Experts at (888) 449-2638. Thanks so much and we look forward to hearing from you!
Darryl Thornton
I have a ‘sole proprietorship’ business and I want to change the business type to LLC. I also want to start a parent company. Do I have to change the sole proprietorship to a LLC first or being that I’m starting a parent company, do I even have to change the business type? Can a LLC parent company own another LLC company? Also, I am a bit confused on the legal protection part. If I have several businesses under my parent company, if one is vulnerable, will that compromise the others? I’m assuming that if my parent company is vulnerable, then so will all the subsidiaries…correct?
Hi Darryl,
Thank you so much for reading and commenting. As you know, my company is unable to provide legal, tax or financial advice. However, we would be more than happy to provide you with some general information about Sole Proprietorships, LLCs and Parent Companies. Please reach out to Talia in my office at (888) 449-2638 or email at info @ corpnet dot com so she can go over these questions with you and answer any additional questions you may have. Thanks so much and we look forward to hearing from you.
Aubrey West
I’ve been running a small business in a mini mall type setting for quite a while. Myself and two other vendors would like to find a new building together, under one roof. We are all very small and so solo we cannot afford commercial space. We would like to keep our individual businesses and individual licenses and taxes. Is there any type of LLC or something similar where we can be under one roof and yet keep our businesses separate? If we don’t unite in some way we cannot get the commercial space as most building owners will not allow subletting which is what would be happening for the two vendors not on the lease.
Hi Aubrey,
Thanks so much for reading and commenting. As you know, I am unable to provide any legal, tax or financial advice so am unable to give specific information based on your situation. However, generally speaking if two or more companies wanted to form a partnership with mutual space, they could form an LLC or Corporation as a holding company with DBAs or another LLC or Corporation under it for each entity to separate the profits and losses of each entity. Please feel free to reach out to Talia in our office if you need any further assistance at (888) 449-2638. Thanks so much and we look forward to hearing from you.
ZantreH
I have a non-profit youth ministry with it’s own EIN, a publishing company (sole-proprietor) with it’s own EIN, and I am considering opening another business. I am thinking about creating “ABC Group” with DBA for the 3 businesses, but I don’t know if that’s the way to go. If I do go that way should I keep the publishing company EIN and change the name to “ABC group” or apply for a new EIN? What’s your opinion about restructuring?
Hi ZantreH,
Thanks so much for reading and commenting! My team would be more than happy to provide you with as much information as possible. Please give Amanda a call at (888) 449-2638 so she can gather more information to better understand the situation. Thanks so much and we look forward to hearing from you!
Kweli Roland
Hello starting a business and torn between a s and C corp. My business I an auto sale and repair shop. And the other businesses that I want to establish is totally different for the auto business. My question which one to choose? Why do some business choose to be a C corp. thanks
Hi Kweli,
Thanks so much for reading and commenting. As you know, I can’t provide any legal, tax or financial advice so am unable to speak to your specific situation. However, my team would be more than happy to discuss the factual differences between an S Corporation and C Corporation so you may decide which is a better option for yourself and your business. Please give Amanda in my office a call at (888) 449-2638 ext 105 and she would be more than happy to assist as much as she can. Thanks again and we look forward to your call!
Shonika Reese
Hello, I currently have an LLC that sells food and I would like to start up another LLC with my Name, Can I Use the First LLC and Run the on with my name under it with out doing a DBA since the second LLC will be my name?? How do I apply the 2nd one?
Hi Shonika,
Thank you so much for reading and commenting So I can adequately answer your questions and provide the best service to you, please give Amanda in my office a call at (888) 449-2638 ext 105 to ensure proper understanding of your question. She would be more than happy to assist as best she can. Thanks so much and we look forward to hearing from you!
Rae
Thank you so much for your article! It was exactly the kind of information I was looking for. I am at a cross roads because I currently blog and am writing a book with plans to do public speaking engagements that relate to my blog and book. I am also finishing up my certification to be a doula and will work as a doula in addition to blogging/speaking. I am not sure how I should set up my businesses as they are separate. I considered doing 2 DBAs but saw the suggestion of having a LLC as a parent company as a DBA underneath the parent company. I am brand new to this so not sure which route I should go. Thank you!
Hi Rae,
Thank you so much for reading and commenting. I am so glad you found this article useful! Since I am not authorized to offer legal, tax or financial advice, I am unable to speak to your specific situation. However, generally speaking, most of our clients that have different business ventures go with an LLC or Corporation as a parent company due to the fact that it offers liability protection over any subsidiary DBAs. If you give Amanda in our office a call at (888) 449-2638 ext 111, she would be more than happy to get you price quotes and go over any additional options that may be available. Thanks again for reaching out and we look forward to hearing from you!
Erick
Hi Nellie,
Thank you for the helpful article. I have one question: I am an actor and work under a loan out company set up as an S-corp (I’m the only employee/shareholder). I ‘m also a licensed real estate agent. Can I have commissions from real estate go to my same S-corp or should I take those commissions as personal self employment income (1099)?
Hi Erick,
Thank you so much for reading and commenting. While I am not able to speak to your specific situation or give any legal, tax or financial advice, I am more than happy to speak with you in regards to general information on this topic. Please give Amanda Beren in my office a call at (888) 449-2638 ext 105 and she would be more than happy to answer any questions and assist in all your business needs! Thanks so much and we look forward to hearing from you!
Jill
Great article! Thank you so much Nellie!!! After reading this I think option 2 is best for me. I already have an LLC (OrganiCreative) which offers creative services (graphic design, art direction, photography, etc) but want to start a 2nd business named Jupiter selling products (e-commerce) which requires filing quarterly sales taxes. I have 2 questions related to this…
1 – When registering Jupiter as a fictitious business name (state of FL), do I need to say it is “OrganiCreative DBA Jupiter” under the company name or is Jupiter by itself sufficient (leaving OrganiCreatve out of the name) and if I leave OrganiCreative out of the name, would using the same EIN number as OrganiCreative be sufficient for the IRS to automatically know that Jupiter falls under the umbrella of OrganiCreative? And would Jupiter be protected as if it were an LLC even without paying separate annual report fees (LLC fees) for Jupiter since I am already paying LLC fees annually for OrganiCreative?
2 – What about the fact that Jupiter is an e-commerce store responsible for quarterly sales taxes while OrganiCreative is not (because it is service-based)? Will this be a problem?
Thank you!!!
Jill
Hi Jill,
Thank you so much for reading and commenting. As you know, I am unable to provide any legal, tax or financial advice so am unable to speak to your specific situation. However, we would love to discuss this more with you and give you general information when it comes to DBAs. Please give Amanda Nunez in my office a call at (888) 449-2638 ext 111 and she would be more than happy to answer any questions and assist in all your business needs! Thanks so much and we look forward to hearing from you
Magy
Hi Nellie,
I’m planning to start multiple business such as Home Tutoring, Daycare. I’m thinking of your option 2 to create one LLC and two DBAs. However I do have one partner in one of the DBA (Home Tutoring) is it possible to add partner at Individual DBA? Please let me know
Thanks
Magy
Hi Magy:
Thank you for reading and commenting. In response to your inquiry, one can set up one LLC with multiple DBA’s underneath. A DBA with multiple partners would be filed under the LLC as a partnership DBA and one can definitely proceed with that route. The word of caution here is that a partnership is like a marriage in business and one can be liable for the acts of the other partner.
Claudia Paralle
I’m forming an LLC with two separate DBA’s. Will the DBA’s each hold their own Tax ID or do they operate under the LLC’s tax ID?
Hi Claudia;
Thank you for reading my article. In response to your inquiry: Generally speaking when one forms an LLC with DBA’s underneath the LLC, the tax ID would be obtained under the LLC name and it would also apply to each DBA underneath the LLC and each DBA would operate underneath the LLC Tax Id Number.
Jon S.
Wonderful article, tons of great information. I do have a question though. I am wanting to start my own business, however I am in the works of finalizing the purchase of a newly built home for my family. This is expected to be done within the next year to year and half, and the lender has stated that I cannot leave my current job to become self employed/business owner unless I have tax returns for 2 years, which my home will be finished and ready to move in before then. So I have a good friend of mine that owns his own business, and basically to keep this short, I would like to know if there is a way he can “own” my business or let his company be a parent company to mine to where I can run as President, but not be the owner of the company. Then after my home purchase is final, I would take over operations from him. Is this possible? If not, could you please advise some other legal ways of going about this. Thank you for your time!!!
Mary B
Thank you the article.
I’m currently a travel agent with sole proprietorship for a travel agent company. However, I am publishing an educational book (w/ my minor daughter) but was going back and forth on setting up my LLC. Eventually, I will need to. How do I keep my book/product profit separate from my Brand name which will be my LLC lets just say “ABC.”
My book is registered under my legal name. Do I setup up a DBA account for my book under my name or book title?
My website will display my brand name. However, my book and product will also be display for sale on the same website. I am overthinking to the point I getting confused.
Hi Mary – sorry for this delayed reply. I am only now seeing your comment. Generally speaking, other clients that I have assisted within your same situation should consider filing an LLC as the main holding company and then multiple DBA’s for whatever they want to conduct under the LLC so it still falls under the umbrella of the LLC but has its own legal name as a DBA. If you still have questions, feel free to email me at: info at corpnet dot com 🙂
Gary P
hi, I have a C corporation. which normally does investments and it’s a 20year old company. I’m planning to start new construction related company & file DBA under my existing company.
Is this still possible to do option 2 with C corp it’s not S corp which is more common
Generally speaking one can file a DBA under any type of corporation even a C Corporation. If you still have questions, please email me at: info at corpnet dot com
Katherina Aquino
Excellent! I need this. Thank you Nellie!
Sure thing! If you still have questions, feel free to reach out at info at corpnet dot com and I would love to assist 🙂
Marco Ramirez
Thank you, this information is great, one quick question, If I wanted to open multiple barbershops but use the same name for all of them, would that be considered an LLC or now a Corportaion, How by doing so? It will be the same owner just multiple locations. I appreciate the help.
JP
Hello, I’m wondering if there are any cons with establishing a dba for marketing and consulting under a mortgage co. (s corp)? Both businesses are similar and my next move is an ecomerce store which i would also like to have as a second dba under my scorp but i want to find out if there is added risk in terms of liabilities for the dbas or if they would share the same protection as the S corp (Parent Company)
Please advise, and thank you for your time.
JP
Rich Kesteloot
Great Article and I’ve read most of the comments.
I wanted to start a company or enterprise. Then purchase a hand full of companies or LLC’s. Would the holdings and controller of all the LLC’s be named enterprise or corporation? Please advise.
Hi Everyone…..
I got a corporation named already. But i wanted this corporation to hold other service s7ch as AutoShop repair, Motorcycle shop repair, Bicycle/E-Bike shop, insurance for vehicles and emission testing….
‘These five services wi be under 1 corporation. These 5 service will also have five different names.
Any suggestions, how can I register these service under one corp?
‘Thanks…
ishmael
hi, my name is Ishmael. I would like to know how to register different dba’s under one LLC legally. which route do I take if I want to do so?
Tara
I have an llc as sole proprietor. My sons want to establish an unrelated business. Can I set up a dab under my llc? Would my sons need to be added as members, if so.
Denis Salvas
my wife and I have been running 2 businesses filing 2 schedule C sole proprietor self employed for 20 years using 1 ein number in my wife’s name only,she is now retiring ,how do I get my name on that same ein number and or do I even have to make any change at all..Thanks,Denis
Hi Denis – I suggest talking to your accountant about this or contacting the IRS directly. There may be community property laws that apply in your state. Sorry I couldn’t be of more help!