For liability reasons and to separate activities, I want to start Two Separate Single-Member LLCs. One in TX and one in Oklahoma. I understand SMLLCs are disregarded for tax purposes. Does this mean I can use the same EIN for both SMLLCs? For tax purposes, can I combine all income and deductions/expenses into one basket. Can I file one schedule C? If so, would I list both SMLLCs on the same schedule C? Thank you very much
Yes, you should probably file two separate Schedule Cs. One advantage of doing so would be that in the event that one of the LLCs has 3 years or more of losses and the other shows profits, you’ll be able to show intent to make a profit for at least one of them. That way both your LLCs wouldn’t be subject to the Section 183 hobby loss provision. I don’t really see any benefits (other than convenience) of combining them anyway.
– Law Office of Kunal Patel, LLC