I'm getting my business plan together to start my investing career. I know there are advantages to holding properties in an LLC. I already have a single-member LLC for a small ecommerce business that I own. Is it safe/legal to use that LLC for my real estate ventures as well? I know that the liability from each business focus could put the other in jeopardy but I'd be ok with that for now since both are small. If I can use the same LLC, can I hold property in a DBA name?
Thanks in advance for any guidance!
Hey @Matt Loeffler , from what I understand, you don't want to mix business lines. I have an LLC for my passive income (rentals) and an LLC for when I was going to active income real estate activities (flips). You can most likely confirm this with your CPA and attorney. They are the best suited to give you some guidance in this area. I spoke with my CPA about it, and he recommended keeping different activities separate. The other thing you want to think about is that even though they are both small now, one or both could get pretty large, then you would be stuck having to potentially separate the businesses at a later date which could get costly (i.e. if you transfer all of your real estate to another LLC later, you may incur transfer taxes on top of all the legal costs of documents to do so). Better to spend a few hundred dollars to start a new LLC and save yourself potentially thousands later. I am not a CPA or an attorney, just have a basic knowledge from asking the same question.
Thank you Dorothy! Great insight!
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