Can you form another business under an existing LLC without inheriting or being exposed to the liability of the original?

Can you form another business under an existing LLC without inheriting or being exposed to the liability of the original We currently have a construction company LLC and would like to start a gift and decor business that is under the current LLC but operates separately and not exposed to the liabilities of the construction company. Is that possible? Asked by StormKatMan 23 months ago Similar questions: form business existing LLC inheriting exposed liability original Business.

Similar questions: form business existing LLC inheriting exposed liability original.

Can you form another business under an existing LLC without inheriting or being exposed to the liabi Business TypesThe main types of business (in the U.S. ) are:Hobby: What your work is called when you don't have an established business. Sole Proprietorship: A business owned by a single individual (or a husband and wife who file join income taxes) who receives all profits. Partnership: A business owned by two or more persons who are liable as co-owners of the business for profit.

Limited Liability Company (LLC): A business owned by one of more people who have limited liability. (Not available everywhere. )Corporation: A business owned by an independent legal and tax entity which remains intact even if its Officers and Directors change.

Which is best for you? How you structure your business affects:How much tax you pay. How much expenses you can "write off."How much paperwork you do.

How much you'll be exposed should you go bankrupt or get sued. Simple approaches such as a sole proprietorship and partnership have minimal tax and paperwork involved, but your personal assets are at risk should things go bad. You can protect (or "limit") your personal assets by forming a separate, "limited" company with a corporation.

However, the trade-off is double taxation and more paperwork.(An interesting mix of all three is an LLC. )For example, I started as a hobby, became a sole proprietor for several years, then incorporated the business as a corporation, to protect my house and family from liability. Most individual photographers operate as sole proprietors, as the taxes and paperwork are easier and there aren't major assets in photography.

HobbyYou don't need to officially establish a business. In this case, in tax terms, you operate your photography as a "hobby." This is how most people start.

There's no additional paperwork required -- checks are written direct to you (payable to "Joe Bloggs") and any income is declared on your personal income tax return, under the line "Other income. " (Consult a tax preparer or tax software for this.)You can even write-off some expenses, even if they're more than your income and you make a loss. The expenses must be ordinary and necessary.

You report this on Schedule C of a 1040 tax form. However, if you have more than a few payments -- recurring revenue -- then you need a business license. For this, you need to establish a sole proprietorship.

Sole ProprietorshipMost photography businesses are "sole proprietorships." This is where one person (you, on your own) operates for profit. You can have a real business name, a business bank account, and employ people.

It's a great place to start -- if you're unsure which business type is for you, then this is the business type for you. The laws to start a sole proprietorship depend upon where you live. Being in California, I had to comply with several state, county and city laws.

First, I had to file a "fictitious name." This is the legal name of the business (anything other than your last name). It's also known as a trade name or "DBA", for "doing business as.

" My business name was "PhotoSecrets Publishing," so I was "Andrew Hudson DBA PhotoSecrets Publishing." (You can't use "Inc. ", "Corp. ", "LLC", those are legal terms for other business types.)I went to a county building, researched to make sure there was not already another business with that name, then filed some paperwork, paid a small fee, and had to advertise the name in a local paper for three weeks.

Once the name was official, I had to get a city business license (another small fee) and confirm that my business address (my rented condo) was zoned for that type of activity.(I also applied for a state Seller's Permit/Resale Number, in order to sell books and collect sales tax. )With the business name official, I could open a separate bank account for the business, and thereby cash checks made payable to "PhotoSecrets Publishing." Now I was in business.

Come tax time, I used the business bank account to total up my income and expenses (not much and a lot, respectively). Then I filled in an attachment to my 1040 tax form called a Schedule C.(This is a key advantage over a corporation -- I was taxed once then, whereas now that I've incorporated, I face double taxation). I made a loss that first year, which was great, because I was able to write-off a new camera and computer and get a refund on my income taxes!(I had worked the first three months of the year in a "real" job with income tax automatically deducted.

)Source: http://www.photosecrets.com/law.business.html Sources: http://www.photosecrets.com/law.business.html .

Financing Basics While poor management is cited most frequently as the reason, inadequate or ill-timed financing is a close second. Whether you're starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well.

These qualities ensure that entrepreneurs avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money. Before inquiring about financing, ask yourself the following: Do you need more capital or can you manage existing cash flow more effectively? How do you define your need?

Do you need money to expand or as a cushion against risk? How urgent is your need? You can obtain the best terms when you anticipate your needs rather than looking for money under pressure.

How great are your risks? All businessess carry risks, and the degree of risk will affect cost and available financing alternatives. In what state of development is the business?

Needs are most critical during transitional stages. For what purposes will the capital be used? Any lender will require that capital be requested for very specific needs.

What is the state of your industry? Depressed, stable, or growth conditions require different approaches to money needs and sources. Businesses that prosper while others are in decline will often receive better funding terms.Is your business seasonal or cyclical?

Seasonal needs for financing generally are short term. Loans advanced for cyclical industries such as construction are designed to support a business through depressed periods. How strong is your management team?

Management is the most important element assessed by money sources. Sources: auroraangels.com/html/financing_basics%2... .

I already have an LLC for a small business and would like to start another of a different type. Can I get another LLC? " "If you wanted to start your own business, would a LLC be better than an Inc?" "Business under LLC can this be change to Corporation.

" "Should I register my business as an LLC or Sole Proprietorship? " "How can I discontinue my LLC, the business plan fell through.

I already have an LLC for a small business and would like to start another of a different type. Can I get another LLC?

Business under LLC can this be change to Corporation.

How can I discontinue my LLC, the business plan fell through.

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