It’s crucial to keep in mind, though, that every business included in an LLC must be connected in some way. For instance, if an LLC is authorized to operate a restaurant, it may also provide catering services or market products associated with the eatery. But a new LLC would need to be created if the LLC wanted to launch a totally different kind of organization, like a software firm.
It is simple to incorporate many firms under one LLC. Getting an EIN, or Employer Identification Number, from the state and registering the LLC are the first two steps. The LLC must next submit a DBA (Doing Business As) form for each additional business it wishes to operate under a fictitious name. The DBAs need to be registered with the state and renewed on a regular basis.
A single-member LLC should obtain an EIN, especially if it intends to open a bank account or hire staff. If the LLC plans to file its taxes as a corporation or partnership, an EIN is also necessary. An EIN is not necessary if the LLC is a disregarded entity, which means that it is treated as a sole proprietorship for tax purposes.
establishing extra protection is one benefit of establishing more than one LLC; if one of the LLCs faces legal trouble, it won’t affect the others. Separate LLCs also make it simpler to sell one of the companies without affecting the others.
In conclusion, an LLC is able to operate several enterprises as long as they are connected. The registration of a DBA for every business that is added to an LLC is necessary. If a single-member LLC is a disregarded entity, it is not necessary to obtain an EIN. If an LLC owns several unrelated businesses, it is permitted to have numerous EINs; but, if the firms are connected, only one EIN is required. More security and ease in selling one of the businesses without affecting the others are provided by having more than one LLC.
No, two LLCs cannot use the same DBA because a DBA is a distinctive name used to identify a particular business company. Each LLC is required to have a distinct DBA.