Ask HN: Building several small companies, how to incorporate them?

#1

Post by vonklaus » Fri, Feb 27, 2015, 1:54 PM UTC

I am going to prototype a few really small lifestyle businesses. Just little companies to try and generate some income. I want to make sure I am protected from liability, but due to how limited the income will be, I don't know how to proceed.

These will be small companies and projects. Does it make sense to just incorporate one entity and then run the companies under a single umbrella? This would open other companies up to the liability of all of them?

Should I make a single master entity, and then have small subsidiaries? What makes sense for operating a few small lifestyle businesses, while limiting liability?

Re: Ask HN: Building several small companies, how to incorporate them?

#2

Post by kylewilliams212 » Fri, Feb 27, 2015, 1:55 PM UTC

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Re: Ask HN: Building several small companies, how to incorporate them?

#3

Post by sebg » Fri, Feb 27, 2015, 2:38 PM UTC

Short answer - ask your lawyer/accountant.

I personally run a few small businesses out of 1 LLC. Because I am a single employee of the LLC, the LLC gets treated as a disregarded entity (http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ...). I work with my accountant to report everything from all the different websites/business but at the end of the day, it gets reported on my personal tax.

Re: Ask HN: Building several small companies, how to incorporate them?

#4

Post by vonklaus » Fri, Feb 27, 2015, 3:05 PM UTC

sebg wrote: post #3

Short answer - ask your lawyer/accountant. I personally run a few small businesses out of 1 LLC. Because I am a single employee of the LLC, the LLC gets treated as a disregarded entity ( http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ... ). I work with my accountant to report everything from all the different websites/business but at the end of the day, it gets reported on my personal tax.

I don't have and an't afford a lawyer. At te end of the year I will get an accountant to do my taxes. It sounds like you are running a couple companies under a single entity. I think that makes sense. In a best case situation any individual company would generate ~10k in annual revenue. Maybe the better ones would be 80k.

What did your lawyer say about liability. If one company got sued, couldn't they come after the assets of another because it is knly a single entity?