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Assman

How to officially form a business under an LLC?

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I'm starting a small cleaning business as a side-hustle, and have already registered an LLC with the state.  My LLC is generically named, having nothing to do with my small business name.  Now I want to form my small business, and have it fall under the umbrella of the LLC.  What exactly do I need to do this?  I don't see any sort of regulatory guidance covering this.  If my LLC is named XYZ Enterprises, and my company is named ABC Cleaning, how do I marry the two?  Are there official forming documents to do this?

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That's called a DBA (Doing Business As).  The bank will have some requirements in order for you to open a bank account.  I'm not sure if Texas requires you to register a DBA, you can check on the Secretary of State site. 

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30 minutes ago, NeverMarryAStripper said:

That's called a DBA (Doing Business As).  The bank will have some requirements in order for you to open a bank account.  I'm not sure if Texas requires you to register a DBA, you can check on the Secretary of State site. 

For some reason, I thought a DBA was different (I got sucked down the DBA vs. Assumed name rabbit hole) but I think you're right.  I was thinking a DBA wouldn't be required here but it looks like that's exactly what I need.

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7 minutes ago, Upgrayedd said:

You do crime scene cleanup?

Sure.  When and where will it take place?

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9 hours ago, Assman said:

For some reason, I thought a DBA was different (I got sucked down the DBA vs. Assumed name rabbit hole) but I think you're right.  I was thinking a DBA wouldn't be required here but it looks like that's exactly what I need.

That's DVDA

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Do you want the cleaning business legally separate from the “parent” LLC for liability purposes? If so, you can set it up as a single member LLC owner by the original LLC. Are you just trying to use an LLC that has been in existence? If that’s it, you could file for a name change on the existing LLC and rename it.

I’m not sure I see the purpose in having an LLC operating a dba business. The only place it would make sense is if you plan on operating multiple entities under the “parent” LLC and then you really need individual LLC’s for each subsidiary company for liability purposes. An LLC with a dba just confuses people, banks, etc.

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16 hours ago, Upgrayedd said:

You do crime scene cleanup?

That’s a tough business.  I received an invoice once that had a line item for removal of brain matter.

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3 minutes ago, StruggleBus said:

You call someone who knows how to do it and let them handle it

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1 minute ago, Upgrayedd said:

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If The Wolf had been called, a former client of mine wouldn’t be doing life in prison.  As he was not called, the homeowners policy took care of the cleanup.  Cleaning up a murder scene is more expensive than you would think.

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Posted (edited)

"Assumed name" is the same as a "d/b/a."  Once you have an assumed name, your legal entity is "doing business as" the assumed name.

So, legally its XYZ LLC d/b/a ABC.

Good practice says register your assumed name with the county (if strictly local) or the state (secretary of) if in more than one county or statewide.  Failure to do so could result in the imposition of liability on you personally if there is any lack of clarity as to who it is exactly that is using the assumed name, i.e. you, or XYZ, or some other entity you've formed, or a common-law partnership between you and XYZ, etc.

If you anticipate taking checks under the assumed name, you will need to do certain stuff with your bank, like register the assumed name.

To maximize the protection your LLC offers, you want your bank accounts, loans, accounts with vendors, leases, etc. etc. in the name of the LLC to the extent possible.  And you need to maintain strict separation between business and personal accounts and spending.

Also, although it is less important than with a corporation, you need to observe the corporate formalities:  have an operating agreement and follow it; issue the membership certificate(s), if only to yourself; etc.  A lot of people get a charter issued and then quit and are surprised when the LLC or corporation is ignored in a legal context.

Edited by TwiceHorn

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Posted (edited)
18 hours ago, Assman said:

I'm starting a small cleaning business as a side-hustle, and have already registered an LLC with the state.  My LLC is generically named, having nothing to do with my small business name.  Now I want to form my small business, and have it fall under the umbrella of the LLC.  What exactly do I need to do this?  I don't see any sort of regulatory guidance covering this.  If my LLC is named XYZ Enterprises, and my company is named ABC Cleaning, how do I marry the two?  Are there official forming documents to do this?

I believe what you want to do what's called a "Series LLC." I did this exact thing last year. I set up two companies under a parent LLC .company. Another reason why Texas beats the hell out of California is it's legal in Texas and about ten other states, but not legal in about 40; Not sure about the process since you already have an LLC established but it shouldn't. Not sure about the process since you already have an LLC established but it shouldn't be a big deal to put it under a single operating company.  Let me know if you want more info (my lawyer set it up, I didn't, but I kind of understand how it works).

You can set six, seven, or eight businesses or whatever up under a parent company and save tons of $ money in certain business practices & expenses, depending on your business. Of course and some businesses it's really not an advantage but in mine it is.

Edited by phdhorn

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