LLC Multiple Companies

[geekgirldany]

I have a client that has a LLC that is treated as a S-Corp for tax purposes. Two members. He is wanting to do other businesses under the LLC name. For example the main business name is My Business, LLC. He wants to do another business called My Business For Storage, etc. Now I know that multiples can be run under a Corporation. I had a client that had two businesses running under the one Corporation name... that was also a S-Corp.
Can the same thing be done for a LLC? Or will multiple LLCs have to be setup?

I hope this makes sense. Thank you

[BHoffman]

I have a client that has a LLC that is treated as a S-Corp for tax purposes. Two members. He is wanting to do other businesses under the LLC name. For example the main business name is My Business, LLC. He wants to do another business called My Business For Storage, etc. Now I know that multiples can be run under a Corporation. I had a client that had two businesses running under the one Corporation name... that was also a S-Corp.
Can the same thing be done for a LLC? Or will multiple LLCs have to be setup?

I hope this makes sense. Thank you

Hi Dany - do the companies have the same business activity codes (NAICS code)? I use this to determine whether company #2 can be a "DBA" or not. If those codes are different, then I'd say that another LLC would be needed.

[Snaggletoof]

Problems, Maybe

Dany, this may be more of a legal problem than a tax problem. Liability protection may be penetrated if activities are improperly commingled, similar to a corporation.

I don't see a tax problem by encompassing other activities so long as they are the same type of companies. It would be awkward, for example, to combine an equipment rental corporation with a manufacturer, or commingling a personal holding company with something different. If the corporation does plumbing contracts and then decides to do trenching, this would be O.K.

[geekgirldany]

Thank you all for responding.

Well I got a little more detail from the customer. It appears it will be the same business. He does printing and is going to target specifc businesses. He will be advertising his business for say storage rentals, under My Printing Business For Storage Rentals. I told him to just still have them pay the main LLC. To track the different businesses he is trageting I told him there is a way to separate them in QuickBooks and do P&L's separately.

I agree the legal aspect did come into my mind. That is why I was wondering if different LLCs needed to be formed. Might be good practice to refer them to a lawyer if it comes up again and it is totally separate business types.

I appreciate the posts this will be helpful in the future if ever comes up again.