What is the best way to structure these two e-commerce companies?
The scenario is that e-commerce LLC1 exists with multiple members/managers. A website, bank account, and merchant account are all established. LLC1 would like to add a high risk product category that no banks (merchant accounts) wish to touch. Adding this category would result in immediate merchant account termination. However, there are merchant accounts that will accommodate this category, but charge 3x the current fees paid for credit card processing. That is too much of a cost for LLC1's consideration.
So, to move forward with offering the high-risk product category, one option would be to create LLC2 with all the same players, establishing a new website, bank account, and merchant account. However, this is not desirable due to the extra work, account, and need to buy separate equipment belonging to the second LLC, etc.
Is there a way to legally nest one LLC inside the other or use some other structure to allow the two websites to operate separately with separate merchant accounts and use one bank account for deposits from each merchant account, share computers, etc.?
The main goal is to sell this product category without creating issues in LLC1, yet keep things as simple as possible.
Thank you in advance for your input.
Well, with the help of the information provided, I believe you can try this:
Create a different portal:
It will be a sub site that will be connected to your main site. It will be similar to www.gap.com. If you take a look at this site, you'll see how the other sub sites (Old Navy, Gap, Banana Republic, Athleta) can be accessed from the main site. The domain is different, the whole site is different, but they are all connected to the same database. This will also allow you to easily use separate merchant accounts for both the sites but the same account to receive the payments.
Our nopCommerce Developers did this for a store and they were able to carry out their functions normally. Although they didn't exactly have any restricted products being sold, but they did have a sub store. If you have any doubt, feel free to get in touch with our nopCommerce Developers here for more clarity.