Should You Form an LLC For Each Web Business That You Own?

An LLC is a legal entity that business owners create to protect themselves and their personal assets from any business liability. An LLC also creates a single business entity that makes it easier for partners to come together and create a successful business together.

When an LLC is created, there is an operating agreement put in place that dictates how the business will run. All of the decisions the business makes are outlined in the operating agreement, including getting a merchant account and accepting payments from clients.

There is a growing contingency of entrepreneurs who are making their living by starting multiple website businesses. Sometimes the websites are related, but other times they are not.

New entrepreneurs who are getting ready to open multiple business websites may have questions about the best ways to organize their businesses. When it comes to an LLC, it can act as an umbrella company to all of your other websites. There are several advantages to putting all of your websites under one LLC, including sharing of services.

When an entrepreneur has a single LLC that he uses as a base company for all of his other ventures, he can consolidate costs on services such as a merchant account. Instead of having a series of merchant account services for each website, he can have a merchant account for the LLC and make things much easier.

One of the biggest advantages of forming an LLC is that partners can be any legal entity from anywhere in the world. If an entrepreneur starts up a business relationship with a web developer in France, then he can offer that developer part ownership in the company in exchange for designing and maintaining all of the websites.

The biggest problem with multiple LLCs is the paperwork nightmare that will be created for the small business owner. Each LLC is required to file a separate document with the state they were incorporated in for tax purposes. If an entrepreneur has 10 different websites, then that is 10 different filings to make. It also means 10 different LLC set-up procedures, which can also be extremely expensive.

Every entrepreneur needs to be concerned with the legal structure of their business because it dictates important activities such as paying taxes. If an entrepreneur is looking to set up a variety of websites, then he and his partners can set up a single LLC and put all of the individual businesses under that one entity. It is easier and it will also be more cost efficient as well.

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