After a rocky job search with not much success ($11 an hour is not going to work, thanks but no thanks), I am thinking of starting my own business.

I've had under the table business in the past but want to do everything right this time.

I live in Florida if that makes a difference.

Question? If I start ZYX, LLC, can I use the LLC for two separate and different businesses?

For instance, say I do auto detailing. And on the side I do tree trimming (just throwing out examples)

Can I use ZYX, LLC, doing business as Bubbatime Auto Detailing AND ZYX, LLC, doing business as Bubbatime Tree Trimming?

Or would it be better to have two separate LLC.

I was THINKING of using some form of my initials to name the LLC, unless that is a bad idea? The state database on corportaion names is huge and finding a good name that is not taken could be a challenge.

As long as the two businesses you have do similar things as in providing a service vs 1 provides a service the other resells car parts, you should be okay with 1 llc.

shoot me an email I'm a FL lawyer

As a CPA I have never seen an advantage of a Single Entity LLC over a Sole Proprietor. In TN a LLC will cost you about $1000 a year in additional taxes & fees. Spend the $1000 on insurance.

Do you understand the reason to create a LLC?

I'm a Florida lawyer as well, located west of Orlando. I'd be happy to help as well.

Email is in profile.

First, while I am not a lawyer, I've set up and run (and, closed) several LLCs in North Carolina. I did so under the guidance of my tax and legal pros, and I recommend consulting similar professionals familiar with Federal tax and corporate laws and those of Florida (and any other state you may have a presence in) before making the call.

quote:

Question? If I start ZYX, LLC, can I use the LLC for two separate and different businesses?

LLC is a form of business organization, just like a corporation is. The choice of organization types does not limit the type (or number of types) of pursuits the business chooses to undertake.

So, yes you absolutely can.

Should you, is a different question. States differ in what hoops (and fees) apply to each LLC, and tax prep (if nothing else) is distinct and thus additional cost for each entity. Plus, if it is important to shield assets (one main reason for choosing LLC/corporate vs. DBA/Schedule C) then it might be important to have separate entities for each business line.

So, understand the costs and the benefits before lumping vs. splitting.

quote:

I was THINKING of using some form of my initials to name the LLC, unless that is a bad idea? The state database on corportaion names is huge and finding a good name that is not taken could be a challenge.

Naming is up to you, but it's worth taking time on to get right up front. If you advertise or will want to generate word-of-mouth, you'll want something distinctive and memorable. People might remember something like 'Cinderella Renovations, LLC' vs., say, 'XYZ, LLC.' If you get the LLC name right, you won't have to go to the extra step of filing /dba papers.

In addition to checking the state database, assuming you'll be using email and maybe having a web presence, check domain name availability also.

A few posts above, Anush, who is a CPA, stated that in his state (Tennessee) taxes and fees for an LLC would cost around $1,000.00 / year.

Maybe true in Tennessee, but bubbatime, who asked the question, is in Florida. I too, am in Florida, and I have an LLC business. The Florida state filing fee for this is $150.00 or less per year.

A "gotcha" precaution: Once you do this, make SURE that you renew on time for subsequent years. Renewal will be $150.00 or less, but if you are one day late on the renewal they slam you with a four hundred dollar penalty on top of the renewal fee!

If you have separate activities under the same "corporate umbrella," tree trimming and auto detailing in your example, check with an accountant. S/he will probably advise that your bookkeeping method should be able to distinguish clearly the income / expenses / assets etc. for each activity. The accountant might even suggest that you keep a separate set of books for each activity, with separate bank accounts.

Take the Florida lawyers' offers to help. I am one too but this is not my area (and Artie is a much better person).

For the general good of the order, LLCs (or any other entity) can be organized for a limited purpose, like to offer tree trimming services or, more commonly, for "any purpose permitted by law." So you can certainly have one LLC do a great many things. Whether that is a good idea is a different question entirely that needs to account for a number of things - liability, taxes, insurance, licensing, ease of accounting, borrowing, employee count/workers' compensation, etc. If it was me, I would form a separate LLC for each business and have them (and any other entities you chose to start in the future) wholly owned by a holding company. That will also make life easier if one of the businesses takes off and you decide to sell it in the future.

Does an LLC provide more protection for you personally? “Corporate veil”

quote:

Originally posted by losvaqueros:
Does an LLC provide more protection for you personally? “Corporate veil”

Yes, that is one of the benefits of using an entity like an LLC or corporation. LLCs are favored because they have fewer formalities than a corporation, but they are very similar. The protection is not absolute though, so good business practices and insurance are still very important.

I own and operate my consulting business under a LLC in Montana. It cost $70 to form the LLC, and costs exactly $20 to renew annually with the Secretary of State.

FYI Sole member LLCs enjoy shockingly limited liability protection in Florida.

This is a quick hit list
https://www.rblawfl.com/blog/f...-single-member-llcs/

quote:

Originally posted by Timdogg6:
FYI Sole member LLCs enjoy shockingly limited liability protection in Florida.

This is a quick hit list
https://www.rblawfl.com/blog/f...-single-member-llcs/

Good link.

If liability protection is the goal, a Corporation, electing S-Corporation tax status, would be a better option.

And, if the two businesses have differing asset/equity bases and differing liability exposures, a separate Corp/S-Corp would be applicable to avoid exposure of the assets of one of the businesses to the liabilities of the other.

Always be careful not to mix personal business with the LLC or Corp business (be at arms length) or it's easier for the plaintiffs attorney to pierce the "corporate veil" and effectively argue the the limited liability entity was just a ruse and pursue personal assets and win.