So I have an LLC for my landscaping gig. Now I'm thinking of starting a small candle-making side hustle and maybe even a mobile car wash. Can I just use the same LLC for all three, or do I need to set up separate ones? Lawyer wants $1500 to advise, so I'm asking here first. Thanks.
LLC structure
Can one LLC cover several completely different businesses?
Generally yes, one LLC can operate multiple businesses. But the liability protection can get messy if they're unrelated. If someone sues the candle business, your landscaping assets are technically exposed. Best to talk to an accountant though.
I have a friend who has an LLC for his lawn care and a separate one for his food truck. He said it was a nightmare mixing them. But he also forgets his own birthday so take thta for what it's worth.
I tried doing this once. Had an LLC for web design and also for selling handmade jewelry. The bookkeeping alone made me want to jump off a bridge. Plus my insurance guy said it was a bad idea. But Im also not a lawyer. Just my two cents.
Pixel_pusher makes a good point about insurance. Some policies wont cover unrelated operations under one entity. You might end up with gaps. Worth calling your insurer before you file anything.
Thanks all. So it sounds like separate LLCs are probably safer, but more paperwork. Any ballpark on what it costs to maintain two vs one? I'm in Ohio if that matters.
Ohio has a $99 filing fee for new LLCs and like $25 annual report. So two LLCs isn't that bad. The real cost is your time and the extra tax returns. Unless you're making bank on candles, probably not worth it. But again, not a lawyer.
JustHereForTheComments is right about the fees. But if you're doiing car wash and candles, you might be able to use a DBA under one LLC and just keep separate bank accounts. That's what I do. It's not perfect but it's cheap.
The DBA thing doesn't slove liability though. If you get sued for the car wash, your candle money is on the line. I learned that the hard way. Not a lawsuit but a supplier dispute that bled into my other business.
Ugh. Okay, maybe I'll just stick with one thing at a time for now. Appreciate the real talk, everyone. Might just do the candles as an Etsy shop under a different name and skip the LLC for that for now.