How to Own Multiple LLCs in Florida

How to Own Multiple LLCs in Florida

The State of Florida allows you to own multiple LLCs. However, whether you’re considering forming one for another business or are seeking to invest in different enterprises, there are things you need to know before making that decision.

Formation and Maintenance

If you already have an LLC, then you’re probably familiar with the process for formation. You’ve drawn up an operating agreement and divvied up responsibilities among yourself and your employees. You know the time and effort it takes. Don’t forget that each LLC will require just as much work to set up and maintain as the last. Two businesses mean twice the paperwork, filing fees, and annual reports. Furthermore, each LLC must have its own separate bank account, financial records, and business records.

Need help deciding if you really need that extra business under your belt? Or maybe you just want to consult with someone before forming your very first one? Either way, we can help.

Manage Your Taxes

Much like your financial and business records, you will be required to file additional tax forms for each LLC that you own. An LLC with a single member is taxed the same way as a sole proprietorship would, but those with multiple members will instead be taxed as if they were a partnership. This is assuming that the LLC has not elected to be taxed like a corporation. In that case, the business will need to prepare an informational tax return that contains overall income and expenses while the members report their share on a schedule attached to their own tax returns.

An overview of LLC taxation can be found here.

Avoid Conflicts of Interest

When you own multiple LLCs, take extra care to avoid the appearance of a conflict of interest. Although it’s a term we usually associate with lawyers and judges, it applies to entrepreneurs and business owners too. You have a certain obligation to each of your LLCs to place their interests ahead of your own, but you also have the responsibility of ensuring that you do not betray one LLC for another, be it on financial or ethical grounds.

Looking to start a business or grow your current business? Contact FL Patel Law today by visiting our website or calling (727) 279-5037.