The answer is yes–it is possible and permissible to operate multiple businesses under one LLC. To operate an additional business under a different name, many entrepreneurs who opt to do this use what is called a “Fictitious Name Statement” or a “DBA” (also known as “Doing Business As”).
Advantages and Risks
Among the advantages can be highlighted versatility, because with the help of DBA you can legally organize the conduct of several types of business under one LLC in different directions without any difficulties. Moreover, this business structure is extremely flexible, and the absence of the need to register one or more LLCs leads to a reduction in organizational costs.
You can use one LLC to provide personal liability protection and cover both companies even if they are different types of businesses. However, it means that the LLC is liable for any lawsuits or debts of the DBA businesses. Creating separate LLCs for each business insulates each company from the lawsuits and debts of the other LLCs.
If you have one LLC doing multiple different activities, the liability exposure could be increased. For example, if your LLC sells products online and also has a small shop in town, if you’re sued because of an issue with an online customer, that could jeopardize your physical store.
An LLC can be structured for a variety of businesses to provide liability protection and flexibility. A tiered structure allows owners to separate assets and strengthen liability protection without starting new LLCs.
Common Questions Around Multiple Business Entities
Can I run two different businesses under one LLC?
Yes, it is possible and permissible to operate multiple businesses under one umbrella LLC.
What do you call a business that does multiple things?
A conglomerate is a large business organization formed when several different businesses join together.
How many businesses can I own?
You can own as many businesses as you want.
What do you call an online business owner?
An online business owner can be called an ecommerce entrepreneur.
Can I put all my businesses under one LLC?
Yes, it is possible and permissible to operate multiple businesses under one umbrella LLC.
How much does an LLC cost?
The cost to form an LLC varies by state, but typically ranges from $50 to $500.
What is a good name for an LLC?
A good LLC name is distinct, simple, memorable and conveys what your business does.
Can 2 businesses have the same address?
Yes, two businesses can share the same physical business address.