Question on using 1 LLC for 2 businesses

[Ayesha Hansen]

Question on using 1 LLC for 2 businesses

Can I use 1 LLC to conduct 2 very different
businesses ?
I am wondering if the IRS will object to it.

I have used the LLC for another business in the past.
However, because of the economy that business has almost
no revenue.

I have 2 rental properties.

Since I already have an LLC, I am wondering if I
could run the rental income thru this LLC.

In the past I have used Schedule E for the rental properties.

I think by using the LLC I will get the LLC liability
shield.

Any thoughts on this ?

Will the IRS wonder what is going on when they see a tax return of
rental properties instead of what they saw in the past in the return?
ie a totally different business.

Will this raise a red flag with the IRS?

Your take on the above subject would be great.

Ayesha Hansen

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[Katie]

On Nov 19, 7:04�pm, Ayesha Hansen <ayeshahan...@gmail.com> wrote:
> Question on using 1 LLC for 2 businesses
>
> Can I use 1 LLC to conduct 2 very different
> businesses ?
> I am wondering if the IRS will object to it.
>
> I have used the LLC for another business in the past.
> However, because of the economy that business has almost
> no revenue.
>
> I have 2 rental properties.
>
> Since I already have an LLC, I am wondering if I
> could run �the rental income �thru this LLC.
>
> In the past I have used Schedule E for the rental properties.
>
> I think by using the LLC I will get the LLC liability
> shield.
>
> Any thoughts on this ?
>
> Will the IRS wonder what is going on when they �see a tax �return of
> rental properties instead of what they saw in the past in the return?
> ie a totally different business.
>
> Will this raise a red flag with the IRS?
>
> Your take on the above subject would be great.
>
> Ayesha Hansen
>

I think you can run as many businesses as you like through your LLC if
you wish, without causing any problem with the IRS. However, for
maximum liability protection, a lawyer might advise you to put each
activity or each piece of real property into a separate LLC. That may
protect the assets of each activity or property from the claims of
creditors of another.

Katie in San Diego
Katie in San Diego