Hi all,
Two of my classmates and I are starting an LLC to help us get our many business ideas off the ground. We are considering one parent LLC with a different subsidiary for each "project" -- such as one subsidiary for gaming and software projects, another for b2b supplying projects, etc.
First, do the subsidiaries need to be LLCs themselves? Since LLCs seem somewhat cantankerous and expensive to start and maintain, I'm wondering if subsidiaries can exist as DBAs without the formality.
Second, on profit sharing, we had the idea to split profit from the parent LLC based on each owner's interest in the collective subsidiaries. For example, if I owned 30% of one subsidiary and 15% of another, my share in profit would be calculated based on my total shares of ownership. Is this a recognized way to split profit? Could the parent LLC's articles outline this in place of a general split at the parent level?
If anyone has taken on a similar venture, any input would be welcome.
Thanks!
Two of my classmates and I are starting an LLC to help us get our many business ideas off the ground. We are considering one parent LLC with a different subsidiary for each "project" -- such as one subsidiary for gaming and software projects, another for b2b supplying projects, etc.
First, do the subsidiaries need to be LLCs themselves? Since LLCs seem somewhat cantankerous and expensive to start and maintain, I'm wondering if subsidiaries can exist as DBAs without the formality.
Second, on profit sharing, we had the idea to split profit from the parent LLC based on each owner's interest in the collective subsidiaries. For example, if I owned 30% of one subsidiary and 15% of another, my share in profit would be calculated based on my total shares of ownership. Is this a recognized way to split profit? Could the parent LLC's articles outline this in place of a general split at the parent level?
If anyone has taken on a similar venture, any input would be welcome.
Thanks!