According to my lawyer 2 business entities are plenty and that is if you want to include real estate. He suggested you create one LLC for your rental properties and one LLC for all your other business activities.

If you have an LLC for one type of business activity, you could operate other business activities underneath it even if the NAICS business activity code you chose originally doesn’t include your other types of business activities. You could operate all your business activities under one LLC.

LLC gives you the same level of liability protection as a corporation according to my lawyer as long as you keep your LLC separate from your personal finances. He has his own practice with another lawyer so he knows what he is talking about. He does suggest you keep your real estate rentals in a different LLC away from your other business activities.

As of choosing S Corp or C Corp, he prefers C Corp because of the limitations of S corp.

This post is to let you know few changes that would happen inside our business structure

  1. Nina’s Soap which I started in 2014 as a sole proprietor would move under Liberman Consulting L.L.C.
  2. We would keep posting articles around the same topics.
  3. We would move our online store to a new website owned by Liberman Consulting L.L.C.
  4. Our YouTube Channel would change name from Marie-Ninette Liberman to Liberman Consulting
  5. Our products would be labeled either Nina’s Soap or Liberman Consulting.

Tax implications for Nina’s Soap

  1. Nina’s Soap was a sole proprietor that I own and filled Trade Names with the state to do business as Nina’s Soap.
  2. Nina’s Soap has her own EIN (Tax Identification number) that I filed tax with.
  3. My lawyer would file a fictitious name resolution with the state to move Nina’s Soap to Liberman Consulting L.L.C.
  4. It might take effect after February. Therefore, in 2021 when I file 2020 Federal Tax, I would file a final return for Nina’s Soap using Nina’s Soap original tax identification number for the revenues generated between January and February 2020. Because of the tax Id number that I use not my social security number to file tax, I have to file a final tax return for Nina’s Soap.
  5. Liberman Consulting would file tax reporting Nina’s Soap revenues from March to December 2020 using Liberman Consulting’s tax identification number.

Implication for Liberman Consulting

  1. Having all business activities under one entity would decrease the number of tax forms to fill out.
  2. The business costs and revenues would offset each other.
  3. The LLC would report all the revenues for all activities without the need to file different schedule K-1s.
  4. However, each business activity would track its revenues and expenses and the main LLC would gather all the data to file one tax.
  5. This reduces the need to have multiple LLCs and file different biennial reports with the state every 2 years.
  6. Liberman Consulting might have multiple websites, but they all would be run by Liberman Consulting.
  7. All the products would be label Nina’s Soap or Liberman Consulting.

Thank you for visiting our website. We have evolved from talking just about natural products to now including how to create multiple sources of income, managing your business yourself, personal finances, cooking healthy and tasty food at the fraction of the cost, and growing nutrient dense vegetables and fruit.

We changed our slogan from “All natural handmade lye soap using the finest oils and butters” to “increase Net Worth, Live quality Life within Budget”.

I thank you very much for sticking with us for the ride. I thank you all that subscribed to Nina’s Soap as well. I invite you to visit our free Download in the site bar to download our PDF Budget and Monthly Expense Tracker and start tracking your income and expense.

Sincerely,

Afiavi-Odjounin Liberman