Hi,

I am exploring splitting up into separate smaller companies with different focus points (Webhosting, Colocation, Domain Registration). If my main company is an LLC do I have to register the other divisions as a separate LLC as well? They would have a different name but be listed as a division of the parent company?


Would the structure I listed above be better classified as a corporation and I have to change the structure to a corporation now?

Depends on the country you are in and the jurisdiction within that country.

Some basics in general for the U. S.

First, lets distinguish between separate companies and separate brands. If you want separate companies...meaning perhaps difference in ownership...meaning one doesn't put the other at risk from a liability standpoint, then they must be separate legal entities...either separate LLC's or Corporations.

However, if you are just trying to achieve separate branding....independent web sites, etc., then that comes under the terminology of "assumed name" or "fictitious name" depending on the state. All states have different rules and different associated costs. However, basically, it means you register a name..."assumed" or "fictitious" which then is tied to a legal entity...which can be a corporation, LLC, or individual. There is no limit to the number of assumed names associated with a legal entity. So, in this case...the legal structure (Corp vs LLC) has no direct bearing on your ability to brand separately. So, these are not in the true sense of the word separate companies-they are simply separate brands (assumed names) under one company.

I'm in the US. An Assumed Name does seem to be the easiest way to do this. In fact it will work perfectly. All I wanted to do was create a different brand with a separate website like you said. Now it's all coming together. Not to mention a lot cheaper than what I was thinking. It only costs $10.00 US for an Assumed Name certificate in my state and it sounds a lot better than paying a few hundred.

However, if you are just trying to achieve separate branding....independent web sites, etc., then that comes under the terminology of "assumed name" or "fictitious name" depending on the state. All states have different rules and different associated costs. However, basically, it means you register a name..."assumed" or "fictitious" which then is tied to a legal entity...which can be a corporation, LLC, or individual. There is no limit to the number of assumed names associated with a legal entity. So, in this case...the legal structure (Corp vs LLC) has no direct bearing on your ability to brand separately. So, these are not in the true sense of the word separate companies-they are simply separate brands (assumed names) under one company.