Can I use existing LLC for private lending after switching from IT Services?

The good news is that in most states, LLCs are designed to be flexible business structures. They don't typically restrict you to a specific business activity like some other entities might. Your LLC's Articles of Organization probably listed a general purpose like "any lawful business activity," which gives you freedom to pivot. That said, there are a few things to consider before switching from IT to private lending: 1. Check your Operating Agreement - it might have language limiting your business activities. If so, you'll need to amend it. 2. Some states require you to file an amendment if your business activities change significantly. Check with your state's business filing office. 3. Private lending is often regulated differently than IT services. You'll need to research lending licenses and regulations in your state. Some types of lending require special licenses regardless of your business structure. 4. Update your EIN information with the IRS by filing a change notice. 5. Consider liability implications - lending has different risk profiles than IT services. You might need to adjust your insurance coverage.

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I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to talk to the IRS about my LLC's tax classification change. I had been trying for THREE DAYS to get through on my own. With Claimyr, I submitted my request around 9am, went to a meeting, and by 11am they called me with an IRS agent already on the line. The agent walked me through exactly what forms I needed to file for my business activity change. The best part was not having to listen to that awful hold music for hours. I literally saved an entire day of productivity. For anyone dealing with business classification changes, getting direct confirmation from the IRS is hugely valuable - they told me several things that contradicted what I'd read online about changing business activities.

One thing nobody's mentioned yet - depending on what type of lending you're planning to do, you might want to consider creating a new LLC anyway for liability purposes. When I moved from consulting to investing activities, my attorney suggested keeping them separate because the risk profiles are so different. With lending especially, if someone defaults and things get messy, you don't want that liability potentially affecting assets in your original business. The cost of forming a new LLC is pretty minimal compared to the protection it provides.

Has anyone had experience with changing their LLC's business activity in Texas specifically? I've heard we're more relaxed about this stuff, but I'm not sure if there are any Texas-specific forms I need to file.