I have three separate ideas, do I need to register three separate LLCs?

Hello,

I have three business ideas that would each qualify to be registered as LLC. Do I necessarily need to register three separate LLCs - one for each idea, or is it possible to have one umbrella LLC, and establish a bank account in such a way, so that checks paid to company name A, company name B and company name C will all go to the same bank account of the umbrella LLC, so that the umbrella LLC name stays hidden from the customers?

Thank you in advance.

Answer

There are a couple of ways to do this. The first is that you register one LLC, but have it operating as several different DBAs. That way, you can opening checking accounts in the name of each DBA, but for tax purposes, they are all part of the same LLC.

In some states, you'll have to pay a large franchise fee annually for each LLC, so going this route might save you money.

Understand that there is no limitation of liability between idea A, B and C--they would all be part of the same legal entity.

There is also something called a series LLC, which permits you to have an umbrella LLC, and various sub-LLCs underneath it. This is often used for a real estate holding company (the umbrella), with each property being held in its own sub-LLC within the series.

Delaware permits series LLCs, as do a few other states.