Author Topic: Creating an LLC with Multiple Lines of Business  (Read 589 times)

mamagoose

  • Bristles
  • ***
  • Posts: 351
  • Location: FL
Creating an LLC with Multiple Lines of Business
« on: August 10, 2017, 12:22:44 PM »
Question for the tax pros:

When creating one LLC to cover multiple lines of business (similar to MMM which includes construction, online publishing revenue, and whatever else suits him), how do you determine which "Principal Business or Professional Activity Code" to use when filing? Assume this LLC is a sole proprietorship, not using S-corp election.

My LLC will include various activities such as "Office administrative services" (561110) and "Independent artists, writers, & performers" (711310), with potential to also include "Other information services" including news syndicates & libraries, Internet publishing <blog revenue & YouTube channel> & broadcasting (519110).

I'm not concerned about cross-liability since each of the revenue streams will be relatively small (under 5 figures annually). Since the portion of each revenue stream will likely vary year to year (in the beginning it will primarily be "Office administrative services" (B2B), then morph more into performing/publishing once I FIRE from my day job, I am unclear which code to use. Can the code vary year-to-year when filing my personal return?

Thank you!
The person who says it cannot be done should not interrupt the person doing it.

SeattleCPA

  • Pencil Stache
  • ****
  • Posts: 808
  • Age: 57
  • Location: Redmond, WA
    • Evergreen Small Business
Re: Creating an LLC with Multiple Lines of Business
« Reply #1 on: August 10, 2017, 02:58:55 PM »
This is an off the cuff answer...

Your LLC gets disregarded for income tax purposes... totally ignored. That means you can, well, just pretend it's not there.

That would then mean that you use a different Schedule C to report each business if they're really different businesses. So maybe three different businesses...

My blog Evergreen Small Business
My free downloadable ebook: Thirteen Word Retirement Plan

CareCPA

  • Bristles
  • ***
  • Posts: 258
  • Location: Northcentral PA
Re: Creating an LLC with Multiple Lines of Business
« Reply #2 on: August 10, 2017, 05:04:49 PM »
Is there even a reason you need an LLC? Why not just run them all as Schedule C's with a tailored d/b/a for each?
If you are the "expert" in whatever service you're providing, I don't think the LLC will give you complete protection anyway (and that's even assuming you maintain a separate legal entity properly). Note: I am not a lawyer.
Always happy to help with tax or accounting questions - feel free to private message me.

I am a licensed CPA in Pennsylvania. However, any tax advice I give should be considered general information and not used in the avoidance of tax. There is most likely information about your situation that I do not know, and thus you should do your own additional research.

Yes, in case it confuses you, I did change my forum name.