Start two business's or one business?

[DerekM]

So, I'm starting to plow this year as my own snow-removal company, but I also want to start landscaping in the spring. So, should I start two separate businesses? They would both be an LLC. Can I start one LLC, say DWM landscaping, then file a DBA in my city for both DWM Landscaping and DWM snowplowing? Should I keep one bank account for both businesses?

On a separate note, I need a registered agent. I do business out of my grandmother's house, I live with her, my brother, and mother. Can I make either of them my registered agent? I'm trying to not spend money when I don't need to. Lastly, what should I do first? Apply for a Tax ID number, file an LLC, or file my DBA at my town hall? I am confused because it says I need an EIN to file the paperwork to form an LLC but it also says I'm supposed to apply for the EIN after I form the company.

[PZagotti@ZnBcpa.com]

Hi Derek,
First the question about one or two companies, if you are just getting started out and don't have the money then a simple DBA will do for now. Most attorney will flip about that because of the lack of liability protection but if you do not have anything and you are not even sure if the company is going to be successful then maybe hold off on it for a while to see if the company can gain traction. A DBA is just a name and not a separate entity so you can use your SSN and you would file a sch C with your tax return at year end.
If you are going t DBA rough and not filing a separate entity, (LLC) then there is generally no need for a registered agent.

You can have two separate DBAs so one for landscaping and one for snow is easy enough.

I work with small startups all the time and the first thing I tell them is at the beginning its about sales and making revenue. You don't need fancy equipment or accounting systems at the moment you just need to sale your services and establish your business. After that you can start to think about LLCs and registered agents and even how to reduce you taxes.
One thing I do advise is that you have a good insurance policy. While you do not have an LLC, insurance will give you many of the same protections.

[turboguy]

Hi Derek,
First the question about one or two companies, if you are just getting started out and don't have the money then a simple DBA will do for now. Most attorney will flip about that because of the lack of liability protection

The way to get around that is to have the LLC being the DBA. In other words DWM Snowplowing LLC. D.B.A. DWM Landscaping.

[Fulcrum]

My suggestion is that you should focus only one business.

Normally I would agree with this. Yet in the case of the OP, landscaping and snow removal fit together quite well. During the winter there really isn't any land to scape (I know this isn't a word but it flowed) so to keep crews busy and cash coming in many landscapers will also take up plowing.

[turboguy]

Fulcrum is right. Those two businesses go together well. I am in that industry as well and it is common for people to do both. Otherwise they are sitting around all winter or all summer with nothing to do. Most however have one company rather than a separate company for both.