You could want to pursue several different business concepts as a business owner. However, setting up a unique LLC for every business can be costly and time-consuming. This issue can be resolved by combining various enterprises under a single LLC. We will go over how to set up many firms under one LLC in this article and address some associated queries.
Choose a Name for Your LLC in Step 1
The name of your LLC shouldn’t be the same as any other LLCs or businesses in your state. On the website of your state’s Secretary of State, you can determine whether your selected name is available.
Step 2: Submit Articles of Incorporation To establish an LLC, you must submit the Articles of Organization to your state’s government. In this document, you must include details about your LLC, including its name, goals, members, and registered agent.
Obtaining an EIN number is step three. The IRS issues your LLC with a unique nine-digit number known as an Employer Identification Number (EIN). To open a business bank account, recruit staff, and file taxes, you must an EIN. The IRS website has information on how to get an EIN for your LLC.
Create an operating agreement in step four. The ownership and management structure of your LLC is described in an operating agreement, a legal document. It also outlines how the LLC will function and the roles and responsibilities of its members. Creating an operating agreement is something you may do on your own or with help from a business lawyer.
To conduct business lawfully, you must register an LLC with the state’s government. To run your firm, you must also acquire the relevant licenses and permits. What Takes Place If I Have Two EIN Numbers?
When filing taxes or creating a business bank account, having two EIN numbers can be confusing and difficult. Each LLC should only have one EIN number. If you unintentionally received two EINs, you should get in touch with the IRS to get one of them cancelled.
You will be given two EIN numbers for the same LLC if you apply for an EIN more than once. When filing taxes or creating a business bank account, this may result in misunderstandings and delays. To cancel one of the EIN numbers, you should get in touch with the IRS.
A company that owns other businesses but doesn’t conduct any business operations is known as a holding company. You must carry out the following actions in order to create a holding company for your LLC:
The name of your holding company should be distinct from any other LLC or company name registered in your state. On the website of your state’s Secretary of State, you can determine whether your selected name is available.
Step 3: Give your holding company ownership of your current LLC.
How Do I Pay Taxes When I Have Several LLCs?
If you have more than one LLC, each LLC’s tax return must be filed separately. If your LLCs are a part of a controlled group, you may opt to file a consolidated tax return. A controlled group is a collection of companies connected by management or ownership. To decide whether your LLCs are a part of a controlled group and whether you need to file a combined tax return, you should speak with a tax expert.
As a result, incorporating many companies under one LLC might be a practical and economical approach to develop your business ideas. To create several businesses under one LLC, you must take the steps listed above. Consult a business attorney or a tax expert if you have any questions about holding companies or EIN numbers.