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Law Educator, Esq.
Law Educator, Esq., Attorney
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Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Separate the Businesses?

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Hello, I am Brittney. I have a record label that i started 3 years ago as an LLC and I have started a ecommerce shoe store in june (no bricks and morter yet). The record label has made no income and the store has started to generate some income. When speaking to a potential accountant I was notified that is was best to seperate the two business making them two different entities as I operate my shoe store under the umbrella of the record label and use that ein to do business. So my first question is should I continue and just use it a DBA or should i seperate the two? Also, I was wondering since i am located in Wisconsin do i have to pay taxes in other states since i sell to people in other countries and states?

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

If your record label is not making anything and has no income, then at this point there is no need for another LLC. You can continue under the LLC you have to operate the shoe store online and you can have a DBA under the LLC for that store. If the record company does not ever make money then there is never a need to open any new LLC.

As far as taxes, you are liable to pay sales tax on any sales you make in WI. As far as other states, it is up to the person receiving the merchandise to pay sales taxes in their state (of course most do not ever do so) but it is not up to you to pay the sales tax in those states for the customers.

If the record company begins making money, then at that time you can form a new LLC for the shoe company and move the DBA under them or move the record company to the new LLC name, your choice.

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