Discussion:2 businesses/1 LLC

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> 2 businesses/1 LLC


Wamark (talk|edits) said:

15 June 2006
I have a client who works in two business activities: 1) a sailing instructor 2) a contract network engineer.

He is a sole proprietor. He wants to set up an LLC.

I understand that his LLC will be a disregarded entity and I'm pretty sure that he will need to report the two different activities on 2 different schedule C's.

Does he need to set up two LLC's or can he use the same LLC for both businesses and just report them separately for tax purposes (I'm thinking he can)?

If he can do it either way, are there any advantages of one over the other?

Thanks

Warren (talk|edits) said:

15 June 2006
It can be done with 1 LLC as you describe. The only advantage to two LLC's that I can see is that if 1 business got sued then the other business might be protected if it was in a separate LLC.

Wamark (talk|edits) said:

15 June 2006
Thanks Warren

To join in on this discussion, you must first log in.
Personal tools