[Event] Ask the Experts: Biz Recordkeeping & 1099-NEC Filing

It is indeed possible for a single-member Limited Liability Company (LLC) in Florida to operate two or more distinct business activities under the protection of the same existing legal entity. To do this legally, the LLC must register any new business name that differs from the LLC's official name as a Fictitious Name (known as a "Doing Business As" or DBA) with the Florida Division of Corporations. There is also an he administrative fees for running both businesses under your existing Florida LLC are quite predictable for 2025. However, you should be aware that there is an additional,  state-mandated cost you will incur for each new  business of $50 as a  registration fee for the Fictitious Name (DBA) filing, as well as, the required newspaper publication fee for the Fictitious Name, which is a separate cost paid to a local newspaper and typically ranges from  $25-$100, depending on your county. 

Also the plan to maintain separate business bank accounts, income and expenses  for each business is not just extremely helpful at tax time, as each will be reported on its own Schedule C,  it is absolutely necessary for the LLC's ability to maintain its liability protection as an entity. 

Important Tax and Legal considerations:

• Legal Entity Status: The LLC remains a single legal entity under state law, irrespective of the number of Fictitious Names used.
• Florida State Filing: Each separate business name must be registered as a Fictitious Name with the Florida Division of Corporations, a process that requires renewal every five years (Florida Statutes Section 865.09).
• Federal Tax Reporting: For income tax purposes, the single-member LLC is, by default, a disregarded entity by the Internal Revenue Service (IRS). All combined income and expenses are reported on the owner's personal Form 1040, typically utilizing a separate Schedule C for each distinct business activity (IRS guidance).
• Exposure to Liability: The protection offered by the LLC is shared across all ventures. If one business faces a lawsuit or a significant debt, the assets and income of the other business, which are held by the same LLC, and are equally exposed to that claim. 

Pros and Cons

Pros: The primary advantage is administrative cost reduction, as you avoid the expense of duplicate state formation fees, annual reports, and registered agent costs associated with forming multiple separate LLCs. Management is also simpler, requiring only one Operating Agreement and one federal tax identifier (EIN) for the entire operation. Launching a new activity involves the simpler process of filing a Fictitious Name, rather than full entity formation.

Cons: The most significant drawback is the shared liability risk. If one business suffers a financial or legal catastrophe, the entire combined pool of assets is vulnerable. Furthermore, while filing fees are reduced, the internal bookkeeping becomes more complex; documentation must be meticulous to support the strict separation of income and expenses for each venture. Failure to maintain these financial distinctions puts the LLC at risk of having its limited liability protection, which is often referred to as, piercing the corporate veil, removed.   veil, or shield that was put in place to protect your personal assets, making the owner personally liable for all business debts.

**Please note that it is important to consult a local attorney for advice pertaining to the  legal considerations of  the exposure to liability for businesses operating under the same LLC structure. An attorney can provide guidance specific to your situation and offer strategies to mitigate risks, ensuring full compliance and protection under Florida law and federal regulations.

Helpful Links for more information:

• Limited Liability Company (LLC) Tax Classification 
• Florida Fictitious Name Registration 
• Florida Statutes Section 865.09 
• Filing Taxes for Multiple Businesses 
  

Please feel free to reach out with any additional questions or concerns you may have and 

thank you for attending!  Please have an amazing rest of your day!

**Say "Thanks," by clicking the thumb icon at the bottom of the post.

** Mark the post that answered your question by clicking on "Mark as Best Answer."