Operating Multiple Businesses under One LLC
Yes, you can have multiple businesses under one LLC. Use a "Fictitious Name Statement" or a "DBA" to operate an additional business under a different name. Many entrepreneurs do this. Delaware is known for business-friendly laws, making it a good state for tech startups.
Acquiring licenses to start a company in the US is crucial. Selecting a registered agent is vital. Consider consulting a business lawyer for advice on structuring multiple businesses under one company. Be aware of risks of opening your business up.
It’s possible to operate multiple businesses under one LLC using DBAs. However, having each business registered separately better protects each one independently. Though more administrative work, each would focus on its own niche with its own protections.
If owning multiple entities in tandem or layered, consult legal and tax advisors on appropriate laws. The Business Entities Section of the Secretary of State processes filings and provides public information on business entities. Combinations include an LLC owning multiple LLCs.
CorpNet’s tools identify if a business name is available. While running multiple businesses under one LLC avoids formation fees, consider liability risks carefully. Using one LLC with DBAs is simple but doesn’t independently protect each business.
Multiple Businesses under One Corporation
What is it called when you have multiple businesses under one corporation? Multiple Business Structures. Generally speaking, there are three different ways to structure multiple businesses: one can create individual corporations/LLCs/partnerships for each business, create fictitious names/DBAs under one corporation/LLC, or a holding company can be formed in which all businesses operate under.
First, there’s no limit to how many corporations or LLCs one person can form. Many entrepreneurs opt to file a new LLC or corporation for each of their startup ventures. For example, you can form an LLC for your landscaping business and another LLC for the golf course you purchased.
One way to structure your multiple business ventures is to form a single company and register as many fictitious names (also called “Doing Business As” names, or DBAs) as you need. A DBA doesn’t create a new entity; a DBA allows your company to legally operate under various names.
If you are in a high-risk business, forming separate business entities for each business is a sound strategy because it shields each of your businesses from the liability of your other ventures.
Using the second method, you form a main LLC or corporation. Next, you file DBAs or fictitious business names under the business entity for each of the business ventures the company owns. You create a holding company like "My Business Ventures, LLC" and then you file DBAs for each of your ventures.
The benefit for filing the DBAs under one business entity is that all of your business ventures are taxed under the same tax ID number. However, just because it’s permissible and possible to operate multiple businesses under one LLC or corporation doesn’t mean you should.
For example, if a lawsuit is filed against any one of the businesses, the assets of the others could be at stake. The result is that you put yourself at a higher degree of liability risk.
It is perfectly legal to run multiple businesses under one limited company. In this situation, the different businesses will have separate trading names (i.e. brand names) to distinguish them from one another.
This is a common approach by firms that wish to diversify and expand their business. On the one hand, you do have greater freedom when choosing a trading name, but there is nothing to prevent other businesses from also using the same name or something similar.
If you use a trading name, the business will still be required to enter all legal agreements under the limited company name.