I own an unnamed LLC, this LLC purpose is to develop & maintain is own websites. These websites only earn revenue from ads. In this situation is the below possible... Can I create a seperate LLC for "each" of my current LLC's websites and still say in the bottom these are maintained by my current LLC? Also, could I pass revenue from each website (lets say 20% per month) to the main LLC and still not be liabilty issues?
1. An LLC can be an owner of another LLC. 2. Creating an LLC for each website seems like overkill unless the website is making enough money to make it worthwhile to be its own entity. Each LLC is responsible for its own taxes, so if they are not each profitable it could be quite expensive. For example in California, the minimum yearly tax on an LLC is $800. The bigger question is what are you trying to accomplish? Why do you think each website needs its own LLC?
Well, I wouldn't do this with all the websites, only certian ones I want the liability not to effect any of my other stuff. The 3 are for funny pictures, funny videos and funny jokes, I'd rather have them have their own liability seperate just in case.
You can do that, but it might not be the solution for your goal. As mentioned above, each LLC you create comes with the potential for additional transaction and tax costs. California has the minimum franchise tax of $800/year for each llc. But other states may not have a minimum franchise tax. You also have to consider other transaction costs associated with forming new entities. First, the fee you pay to the Secretary of State could be more than nominal (In Texas, it costs $300 to form an LLC). Second, you will have to file a separate tax return for each LLC. If you have more than a few LLCs, this can be really time consuming for you (or expensive if you outsource to a CPA). So it depends on whether reducing your risk is worth the extra fees and costs. Thus, you need to assess your risk(s) and figure out how much the actual costs, both initial and yearly, would be. I have a blog that might help: www.thestartuplawyer.com
Have you consulted a lawyer or a CPA about this? All you are going to get from this site is probably (there are probably a few real lawyers around maybe) just personal advice. If you are serious about making sure your liability is safe, there is no substitute for a good lawyer/CPA combo when it comes to LLC/INC
this is how i've set mine up, but i have to say, its not been vetted by my CPA yet. setup your LLC and then file DBA with the county for your websites. so you can have SiteX DBA XLLC. i'm only doing this for sites that need bank accounts, you need to clearly state the legal structure in your articles of incorporation. important to note, i've only done this for sites taking money - thus needing a bank account in their name. for other sites, i consider them holding of the llc.
Yea, I would agree that setting up an LLC for each site (or a number of them) would be very expensive and overkill. It is very expensive for me in my state to start an LLC and way above my head on firguring out taxes. My sister has a hard time with paperwork, fees, etc. with one LLC much less multiple....
A few possiblities.. #1. If you have 2 or more separate sites that are making a lot of money individually, you might consider setting up individual LLC's to limit your liablity. A lot of money is relative. I would say, anything over 100k a year personally... #2. If you run a low risk legitimate site that makes great revenue, and another site that is very risky and more likely to risk a lawsuit, I would suggest setting up 2 LLCs. Yet, I see no reason to setup an LLC for every website project you may have, until they are making revenue. If your sites are making enough revenue/exposure that you are worried about being sued, you probably can afford proper legal advice. If not, I wouldn't worry about. Disclaimer. I'm not a lawyer. Go get proper legal advice. Wyatt
From a cost stand point, I have found it easier to just incorporate then have several dba's, ie., doing business as.. Then you get all your companies under one roof.
A HUGE difference...you need to do some research before you decide what to do (please note i'm not promoting this site...it just happened to be the first one I found on google when i searched just now) http://www.mycorporation.com/comparison.html That is a comparison chart, you can find more detailed info if you go back to the main page there and you can click on each type separately...