How to Set Up an LLC Under Another LLC

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How do I set up an LLC under another LLC?
If you set up multiple LLCs, you will have to file LLC forms and pay a fee for each one. Each LLC will need to keep its own records and maintain its own bank account, payroll and tax documents. Setting up a parent-subsidiary structure will not always allow you to avoid liability.
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A limited liability corporation (LLC) setup under another LLC can have a number of advantages, including asset protection and simpler management. The methods below can be used to create a new LLC under an existing one if you already have one: Check your state’s laws first; not all states permit LLCs to have subsidiary LLCs. To find out if it’s possible, contact the secretary of state or the business registration office in your state. Choose a name for your new LLC that is distinctive and hasn’t already been registered in your state. To distinguish it from the parent LLC, you can tack on an adjectival suffix like “LLC” or “Ltd.” 3. File formation documents – Just like you did with the parent LLC, you must file formation documents with the state agency in charge of business registration. The documentation will list the name of the new LLC, the members’ or managers’ names, and the name and address of the registered agent. Get any additional licenses and permits required – Depending on the nature of your business, you might need to get more licenses and permits for the new LLC. Although you can legally use the same bank account and bookkeeping system for the parent and subsidiary LLCs, it’s ideal to keep them distinct to avoid confusion and maintain correct record-keeping.

5. Set up separate bank accounts and bookkeeping. Can More Than One DBA Be Used Under One EIN? There is no restriction on the number of “Doing Business As” (DBA) names you can have under a single EIN. If you wish to sell several product lines or brands individually, this can be helpful. Do I Require a Different Bank Account for Each DBA?

In theory, you could have more than one DBA using the same bank account. To keep track of revenue and expenses for each DBA, it is best to create separate accounts for each.

Is it Possible to Run Two Businesses from One Location?

Yes, as long as they don’t compete with one another and abide by local zoning laws and regulations, you are permitted to operate two or more enterprises out of one location. To prevent confusion, it is best to maintain distinct signage, entrances, and business hours. If I switch to an LLC, do I need a new EIN?

A new EIN must be obtained for the LLC if you’re changing an existing business structure, such as a sole proprietorship or partnership, to an LLC. However, you don’t require a new EIN if you are only changing an existing LLC’s name or address.