Is it wise to have two in-home businesses be subsidiaries of an LLC?
My husband is a sole proprietor and I am in the process of also opening my own business - both will be in-home businesses. Would it be wise for us to open a LLC and have our companies be subsidiaries. Does an LLC provide protection for it's subsidiaries? Will this also allow us to file one tax return?
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<P>Simply put, yes you can easily use one LLC to run the two different profit centers. If you open a second LLC you are up for another set of fees and tax returns for the second company. So yes, with one LLC just one return there and then private returns for yourself and your husband.</P>
<P>Remember this, an LLC is an entity all to itself and it can carry on many different activities even if the activities are totally unrelated.</P>
<P>Be sure to go see a good accountant or tax and estate planning attorney though as every state and even some counties have different rules. That said, some even have different rules for home based companies.</P>
<P>Good luck with the new business.</P>