I'm starting a network of websites and I need help figuring out the business aspects?

Question

So a couple friends of mine and I are starting a collection/network of websites. We've already launched one (it's a blog we're planning on making advertising revenue from), and we're launching a web design company to do some design-related work on the side as well, with plans to expand into creating web applications and other endeavors.

My question is, when we go to fill out the business papers, should I declare one business, such as an LLC, to be the business controlling both the blog, the web design company, and any future endeavors, or should I do the paperwork and declare a different business for each?

I'm not very familiar with the perks of an LLC vs an S-Corp or Sole Prop, whatever, so I don't know what's possible really.

Answer 1

You start with a single LLC as an umbrella for all your different endeavors. Anything else would be overkill. (If you fail, the LLC shelters you from personal liability. If you succeed, you can create additional subdivisions at will, then separate them off into separate companies if you wish). A single business plan and simple structure makes financing easier, whether it's through a bank or private investors. Sole proprietorship offers no advantages over an LLC (except it's simple, just start doing business). It leaves you at personal risk for all business debt, which is a very bad idea. Subchapter S corporations are very difficult to set up. The only advantage they offer is to be taxed as an individual, rather than as a corporation, which can also be done with a properly designed LLC.
If your business succeeds beyond all imagination, you can easily change your corporate structure to fit your needs. That's what an IPO is for.

Answer 2

LLC the parent company. Keep the others as subsidiaries.