Asked in Business Formation and Business Law for Florida

Q: I own an LLC that sells trending fashion on its business website. Can I start/run any new companies under the same LLC?

My current LLC sell female fashion apparel, shoes, intimates, & accessories. But there is some businesses that are very similar to mine that I have the right connections to start a new business per that product category or service. Can I run a new similar business under my LLC? Or better yet, how many businesses can be run under 1 LLC? I also may switch to S corp due to tax reasons. Can I run more then one business under a corporation structure as well? Thank you for your time!

2 Lawyer Answers
Jane Kim
Jane Kim pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Naples, FL
  • Licensed in Florida

A: You can run as many businesses as you like under one LLC, but you will create market confusion and will not isolate your business interests from liability. That's why doing so would make very little sense. Some states allow for series LLC to create different (legally separate) branches under one LLC, which may make sense for you to do.

Similarly, your tax comment makes very little sense since under an LLC or an S corp, there is no double taxation, both are pass-through.

Good luck.

Keith Kanouse
Keith Kanouse
  • Boca Raton, FL
  • Licensed in Florida

A: All income from a LLC is subject to employment taxes. Discuss with your accountant on making a special election for your LLC to be treated like an S corp. This will give you the ability to have a reasonable salary to subject to employment taxes and any excess income treated as a distribution not subject to employment taxes.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.