Two Businesses Under One LLC?

[Baugher]

I do not know if this is a legitimate question or not. I feel so ignorant when it comes to this stuff, and I hope my question makes sense.

I am a full time teacher and a couple of years ago I formed an LLC and obtained a Federal EIN to teach a couple of classes on the side for some extra money. I have no plan to grow into something major - I just enjoy teaching and needed some extra money to provide for the family.

I also do web design, which has been mostly for non-profit organizations. But now I am starting to get paid for designing some websites for a couple of companies. I see this as more of a hobby that I get paid for as well.

My question is can I run my web design company under the same teaching LLC and Federal EIN, or do I need to form a separate LLC and obtain a second federal EIN? I am willing to do this, but the price for the LLC just seems like a lot right now when I am so small.

If I am not allowed to run the web design under my teaching LLC, then do I need an LLC and Federal EIN at all for the web design? Can I just file taxes as just making some money on the side through a schedule C?

Thanks for your time and help in advance!

[Freelancier]

Yes, you can do that. The LLC is just a corporate shell under which you can do pretty much any legit business activity, regardless of whether it's all related to each other.

[Baugher]

Thank you for your quick reply. That is what I thought but needed to be sure. Does it matter that the name of my LLC and business checking account have nothing to do with my web design?

[Freelancier]

Only from a marketing message perspective. If you plan to promote a business, it helps the business if it's not named for something that sounds not at all like what you do. In other words, calling your web design business "Sports Track Betting LLC" won't help you with that business.

If it becomes important, you can create another LLC for just the web design business and split it off or you create do a d/b/a through your county clerk's office.

[Bobjob]

I'd ask a lawyer just to be safe. Bear in mind I'm no lawyer and know nothing of the law.

Seems to me if they are both under the same LLC if one business got sued then the other would be susceptible. Having two LLCs might be safer.

[Freelancier]

Seems to me if they are both under the same LLC if one business got sued then the other would be susceptible.This is correct, but given the amount of work the OP is claiming she's doing with these two businesses, the amount of money/business being put at risk is very low.

[Baugher]

Thank you so much for your time and help this helps so much. I really do appreciate it. I think I might just given in and get a second LLC. However, one more question. If I get a second do I also get a second Federal EIN or do I use the same one that I already have for both LLCs?

[Freelancier]

No. Each entity gets its own ID number (EIN). It's like having the two people with the same social security number, it's just not legal. And those are free, so no worries there. And each entity will get its own Schedule C when the time comes, those aren't free unless you do them yourself. :)