LLC question

[ClaireC76]

Hello,

I have a single member LLC in Michigan, but plan to open more than one business. (The two businesses are technically different, but both could be categorized as "consulting.") Do I need a separate LLC for each business?

Thanks,

Claire

[Terri Lynn]

For your single-member LLC in Michigan, you generally don't need a separate LLC for each new business. You have two main choices:

1. Run Everything Under Your Current LLC

•  Use your existing LLC for all your businesses. You can even use different "Doing Business As" (DBA) names for each one.
• Benefits: Cheaper (fewer fees), less paperwork overall.
• Considerations: If all your businesses share the same risk. If one business gets sued, the assets of all businesses, under that single LLC could be affected. You' will also want  to keep separate financial records for each business, even though they would legally be one,

2. Create a Separate LLC for Each Business

• Start a brand-new LLC for each new consulting business.
• Benefits: Each business has its own protection. If one faces a problem, your other businesses' assets are usually safe. It also makes finances very clear and easier to sell a single business later.
• Considerations: This can be more expensive as there will be more filing fees, and more paperwork to keep track of for each separate LLC.

Helpful Links for more information:

• Michigan Business Taxes Page 
• Tax Tips for LLC Tax Filings 
• Business Tax Return Filing 

Please feel free to reach backout with any additional questions or concerns you might have!

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