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!
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.
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.
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