I'm trying to decide if I should use my LLC as a DBA for some of my real estate ventures such as wholesaling or staging instead of creating a separate LLC for each venture. I might do those ventures only short-term or maybe even just create their own individual LLCs as I expand and grow with those ventures. I don't hold any real assets or properties in my LLC as of now. The LLC will be just there so I don't operate under my own name and for personal liability protection. At first I thought about using my LLC as a "parent" or "holding" company and creating LLC subsidiaries for each venture. I don't want all the expense and hassle of structuring something complex until I get to that point in the future. For now I just want to focus on growing my business and thought that using my LLC as a DBA could be the easiest and best way to go for now. Any thoughts?
A LLC for all purposes is just to create separation between your entity, and you as a person. Another option is to Create your LLC, but for your staging business being a DBA for your LLC so you usually pay the LLC fee, and the minimal fee for your DBA for instance your LLC is Cloh consulting, and you have a DBA that simply states to the public that Cloh Consulting, also operates CLoh Staging, and CLoh investments. You just have one LLC but that LLC performs services under different names. If you grew and CLoh staging gain 250k in assets, i would recommend creating a LLC at that point making it a separate entity, but if you are under that asset number i would recommend a E&O insurance, and a umbrella policy. it would we a wiser use of protection and money until either DBA produces significant assets.
This is strictly my opinion based on experience and education. In no way is tax or legal advice.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!