Multiple LLCs or Just One

[eGrizzly]

I have an business (LLC) where I want to provide Digital Marketing, Cybersecurity, and E-Commerce. I've discovered that when going for vendor contracts that NAICS codes for Digital Marketing, Cybersecurity, and E-Commerce are all different.

Should I split my current LLC into 3 different LLCs so I can offer Digital Marketing in one, Cybersecurity in another, and E-Commerce on the third?

As always guys thanks for all your suggestions, tips, and comments.

 

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[The Sandman]

The reason to split or not has nothing to do with the NAICS code. You split to limit liability across different businesses.
If you don't actually have any business yet you can wait and do it later. At this point what assets would you be protecting?

 

[BigRomeDawg]

You, personally are going to offer all 3? Sounds like you will be spread thin.

 

[Johnny boy]

Some company could hypothetically make you register in their system and could arbitrarily say “you can only have one NAICS code in our system” or something but I doubt that will happen and it would be company specific I’m assuming. You can offer multiple services without 3 LLC’s. And if you’re doing government contracting it’s okay.

Make sure it’s an S Corp if you start making 100k+ or so profit so you can pay yourself distributions without self employment taxes.

 

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[SEBASTlAN]

Series LLC - Wikipedia

en.wikipedia.org

 

[Caminsky]

As mentioned by others, you shouldn't be limited by just one NAICS code. Often one might consider multiple LLCs if they are trying to limit liability exposure from one business to another. They may also do so if the functions of the different businesses are distinct enough to where it makes sense to keep them separate.

Some states offer "Series LLCs" where you can create multiple subsidiaries of an LLC without actually going through the whole formation process for each subsidiary or series. That said, there is still some debate regarding the limitation of liability and tax issues, especially when doing business in a state that does not recognize Series LLCs.

If you do decide to go with multiple LLCs, it's a good idea to make sure you genuinely treat them as separate businesses. Comingling assets and funds could be problematic if there is a lawsuit or tax issue.