Question on using 1 LLC for 2 businesses

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

Reply to
Ayesha Hansen
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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

Reply to
Katie

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