brand-logo
hamburger-menu close-menu
  • How to Start an LLC
  • Business Formation Services
    • Best LLC Services
    • Best Incorporation Services
    • Best Registered Agent Services
    • Northwest Registered Agent Review
    • ZenBusiness Review
    • Active Filings Review
    • Swyft Filings Review
    • Rocket Lawyer Review
    • Inc Authority Review
    • BetterLegal Review
    • BizFilings Review
    • Incfile Review
    • Nolo Review
    • LegalZoom Review
    • Harbor Compliance Review
    • Incorporate.com Review
  • About Us
Table of Contents
  • Is It Possible To Have More Than One Business In A Single LLC?
  • Option 1: Running Multiple Businesses Under One LLC
  • Option 2: Creating Individual LLCs For Each Business
  • Option 3: Forming A Series LLC
  • Option 4: Running Multiple LLCs Under One Holding Company
  • Frequently Asked Questions

Home > Can You Have Multiple Businesses Under One LLC?

Can You Have Multiple Businesses Under One LLC?

author-image by Andrey Doichev Updated: March 13, 2023

Are you confused about how to start multiple businesses under one LLC?

You're not alone, which is why we've created this guide.

We're going to take a look at:

  • Whether it's possible to have more than one business under a single LLC
  • The process of creating multiple businesses under a single LLC
  • Creating a separate LLC for each business
  • Forming a series LLC (SLLC)
  • Creating multiple LLCs under a holding company

So, let's dispel that confusion and get you up to speed!

mcc tick Last updated: Mar 2023

Start your LLC the easy way

Forming your LLC is a checkbox that needs to be ticked. Easy, fast and worry-free. We reviewed the 13 most popular LLC formation services to figure out who truly understands what new founders need. Our recommendation:

Northwest Registered Agent Logo 300px 1
mcc star mcc star mcc star mcc star mcc star
LLC Formation: $39 + state fees
Pricing:
mcc star mcc star mcc star mcc star mcc star
Turnaround Time:
mcc star mcc star mcc star mcc star mcc star
Help & Support:
mcc star mcc star mcc star mcc star mcc star gray
Customer Satisfaction:
mcc star mcc star mcc star mcc star mcc star
Ease of use:
mcc star mcc star mcc star mcc star mcc star

We don’t make up scores.
Read our full review of Northwest

Best LLC Service 2022 mccta trophy

  • Formed 1,000,000+ LLCs
  • $39 formation includes registered agent service
  • Fast formation & same day filing
  • Exceptional customer reviews
Visit Northwest
mcc tick Last updated: Mar 2023

Is It Possible To Have More Than One Business In A Single LLC?

Yes, you can have multiple businesses under one company.

There are many benefits to forming an LLC if you're a business owner. Some of the main benefits are as follows:

  • Flexible taxation
  • Personal liability protection
  • Easy to form and inexpensive
  • Management and ownership flexibility

If you want to structure multiple businesses under one LLC, there are several ways to go about it. Each option has pros and cons to consider before you decide which is the best choice for you.

The laws and regulations that apply to forming LLCs vary from state to state. It's always wise to invest in a legal professional to help you throughout the process.

Option 1: Running Multiple Businesses Under One LLC

In order to operate multiple businesses, it's often easiest to use a single LLC.

The most straightforward way to have multiple business ventures under a single LLC is to use DBAs. A DBA (Doing Business As) is the name under which a business venture operates. This name is different from the legal name of the parent company.

For example, if your LLC is called ‘Mike's Company,' you could have another business operating under the DBA ‘Tom's Shoe Store.' This allows you to run the two companies as separate entities.

As usual, the laws and regulations regarding DBAs differ between states.

Pros

  • The original LLC and the DBAs give the business owner liability protection.
  • It's a relatively simple way of structuring multiple businesses.
  • The administrative burden is less than it would be for a corporation.
  • The owner can make a single tax filing for the LLC and any DBAs.
  • There's only a single business entity to maintain, which means business compliance requirements are more straightforward.

Cons

  • The businesses share liability risk under one LLC.
  • It's more difficult to sell one of the businesses.
  • It can be tricky to keep track of your finances because the different names must match specific bank accounts and financial records.

Option 2: Creating Individual LLCs For Each Business

Another way of operating multiple businesses is to create a separate LLC for each business. The number of LLCs you can legally be part of is unlimited, so forming many separate LLCs isn't an issue.

There will be a lot of paperwork when creating multiple business entities. It's not as straightforward as creating DBAs.

Pros

  • Separate LLCs are separate entities. This means every LLC is independently protected from the others and limits the liability for each business.
  • It's a simple and neat structure that is easy to keep track of.
  • Selling off an individual business is much easier than it is with a DBA structure.
  • Bringing on new business partners is relatively straightforward.

Cons

  • Forming several LLCs means a lot of paperwork. This includes documents like annual reports and Articles of Organization.
  • This structure can come with additional tax liability. This is the case when your businesses don't follow the same accounting rules or run through a single fiscal year.

Option 3: Forming A Series LLC

A series LLC (SLLC) is a unique type of LCC. It's essentially a parent LLC with one or more LLCs branching off. Each branching LLC is a separate business entity. This protects each business from the others.

However, not all states permit the formation of SLLCs. Some states do allow them but with specific regulations. For instance, California doesn't permit SLLCs to be formed within the state. Yet, California will allow an SLLC formed in another state to operate within it as a foreign SLLC. This comes with extra tax implications.

Pros

  • Highly flexible but with all the advantages of a traditional LLC
  • You can avoid state filings when you create new entities and avoid extra administrative fees.
  • A registered series LLC allows all your business ventures to have formal state recognition. Each business can also obtain a certificate of good standing.

Cons

  • As SLLCs are new and fairly untested, minimal case law exists. This means it's uncertain how an SLLC would fare in court and what would happen in the case of bankruptcy.

Option 4: Running Multiple LLCs Under One Holding Company

The last option would be to structure multiple LLCs under a single holding company. In this case, each LLC is responsible for its profits and losses, and the holding company itself doesn't generate any revenue.

Pros

  • All the taxes are paid once through the holding company, even though each business has its own profits.
  • It's easy to monitor profits and losses, as they're all reported under one company.

Cons

  • It's relatively expensive to set up a subsidiary company to keep the profits and losses of each business separate.

Frequently Asked Questions

  • right chevron
    Is a conglomerate the same as having several businesses under a single LLC?

    No, a conglomerate is a different entity from an LLC. A conglomerate is when a single company owns controlling stakes in several smaller companies. The smaller companies conduct business independently of each other.

  • right chevron
    Why do people have multiple LLCs?

    There are many reasons why you may want to have more than one LLC. One of the main reasons is to separate businesses so they're protected from each other. This reduces the liability risk to the owner or owners.

  • right chevron
    Do all of my LLCs need their own bank accounts?

    Each of your LLCs must have its own bank account to maintain the legal separation between the business and the owner.

  • right chevron
    What is the best way to legally structure multiple businesses?

    There is no single best way, as each business owner has different priorities, however the top three ways to structure multiple businesses are:

    1. Create independent LLCs for each business
    2. Create multiple DBAs under a single LLC
    3. Create businesses under a holding company
Disclaimer: We try to educate our readers the best we can, but we do not provide legal or tax advice, and our content is for general information only. If you require legal or tax advice, please reach out to a qualified professional. Our work is supported by affiliate commissions.
Table of Contents
  • Is It Possible To Have More Than One Business In A Single LLC?
  • Option 1: Running Multiple Businesses Under One LLC
  • Option 2: Creating Individual LLCs For Each Business
  • Option 3: Forming A Series LLC
  • Option 4: Running Multiple LLCs Under One Holding Company
  • Frequently Asked Questions
LLC Formation Deals
Northwest RA - Best LLC Service 2022
Visit Northwest
$39 + state fees
ZenBusiness - Popular LLC Service
Visit ZenBusiness
$0 + state fees
Disclaimer: We try to educate our readers the best we can, but we do not provide legal or tax advice, and our content is for general information only. If you require legal or tax advice, please reach out to a qualified professional. Our work is supported by affiliate commissions.
author-image
Andrey Doichev

I launched my first small business in 2015. I loved airsoft, so I created a small website where I would go on to educate parents about the sport and help them buy the safest gear for their kids. Since then, I have started many similar ventures, educating millions of people on topics including entrepreneurship, marketing, website development and online privacy.

footer-white-logo

We are a small team of entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.

Our mission is to guide you through the process of LLC and business formation and enable you to take your first steps into your world of opportunities.

Start Here:
  • How to Start an LLC
  • Best LLC Service
Other
  • About Us
  • Contact
  • Terms of Use
  • Privacy Policy
Copyright © 2022 Inc and Go Ltd. | All rights reserved.