Operating Multiple Businesses Under One LLC
By HBS Tuesday, September 18, 2018
By now, it’s common knowledge that Delaware is the gold standard when it comes to forming an LLC, LP, or Corporation. The Delaware LLC is by far the most popular entity type for most entrepreneurs building a startup.
As a result, people often wonder if they can operate multiple LLCs under one umbrella LLC.
Structuring Multiple Businesses Under One "Umbrella" LLC
For example, let's pretend a business owner has a trucking business incorporated as an LLC but after some time, he/she may also want to offer real estate services.
These are two completely different types of businesses, so it raises the question of whether or not the owner can provide both services under one LLC. Part of the consideration is, naturally, wanting to avoid additional costs for maintaining another LLC.
The answer is yes--it is possible and permissible to operate multiple businesses under one LLC. Many entrepreneurs who opt to do this use what is called a "Fictitious Name Statement" or a "DBA" (also known as a "Doing Business As") to operate an additional business under a different name.
However, just because it’s permissible and possible to operate several different types of businesses under one company (LLC or corporation) doesn't mean you should, as there can be downsides.
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. In other words, if one of the pieces (businesses) within the LLC were to be held liable, then so could the entire LLC.
Instead, many people opt to file a new LLC for each of their start-up ventures. This isolates the risk by separating each business's debts and liabilities. There are, of course, additional maintenance fees, but these can be well worth it in order to protect your businesses.
If you would like more information or have any questions about forming your own companies, please contact us by phone (800-345-2677), Skype (DelawareInc), email or live chat. One of our knowledgeable business startup specialists will be happy to assist you.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
There are 16 comments left for Can I Operate Multiple Businesses Under One LLC?
hil said: Thursday, September 24, 2020Thank you so much. This answered the question I had.
HBS Staff replied: Thursday, September 24, 2020Our pleasure. Thanks for reading!
Neil Donnelly said: Sunday, August 16, 2020I have a PLLC with one health care location and want to add a new location. I want to use the existing business name but want to go into a partnership on just the new location. What legal structure would facilitate this?
HBS Staff replied: Monday, August 17, 2020Neil, we recommend you speak with a lawyer due to the various practical and regulatory considerations, but the you could also look into (1) using a DBA on the new entity representing the new location so that both operate under the same trade name (e.g., if the names are Healthcare CoolBusiness I, LLC and Healthcare CoolBusiness II, LLC, they could just jointly operate as Healthcare CoolBusiness as their trademark) or (2) the two locations could jointly own a third entity as a joint venture with gain and loss parsed out as appropriate from the centralized operating entity, which would operate under and hold rights to the desired name. However, these are just ideas and should not be taken as legal advice. Hope that helps!
Uday Saindane said: Thursday, February 20, 2020I want to start Snack & Chaat Center, Clothing , Shoe Laundry under One Premises with different name in Mumbai. Is it Ok to go ahead and do the necessary license for each and every business. Please advise. Mob - 9324949177
HBS Staff replied: Thursday, February 20, 2020We would be happy to help you set up multiple LLCs for your different lines of business if that is what you would like to do. Simply call, email, or live chat with us to get started. For business license support, we refer you to our partner LicenseLogix - https://www.licenselogix.com/.
Trekmovers said: Friday, September 6, 2019For example, if you ran an editing business using the same LLC that operates your dog walking business, and one of the dogs you're walking gets injured while under your care, it's not just the assets and income of your dog walking business that will be exposed to liability the assets and income belonging to your editing business, which has nothing to do with your dog walking business other than being run within the same LLC, will also be exposed to any legal claims which might be filed against your dog walking company as a result of the incident.
Luis said: Thursday, June 6, 2019Hola, si uno vive en otro país distinto de USA registra una LLC unipersonal en Delaware y bajo esa LLC quiere operar varios sitios web distintos uno de otros para e-commerce que vende a todo USA y el mundo, es necesario obtener un EIN para cada sitio y un DBA para cada sitio también? Ej: Mascotas.com / AsesoriosAutos.com / AlquilerDeCasas.com, etc Considerando su respuesta, cada sitio debería tener una cuenta bancaria diferente o la cuenta bancaria se abre para la LLC mas allá de los distintos sitios web que opere ? muchas gracias, saludos!
HBS Staff replied: Friday, June 7, 2019Hola! Muchas gracias por visitar nuestra pagina, es un placer asistir con sus preguntas. Una LLC puede tener mas de un sitio web bajo una LLC. Si es que va recibir pagos al nombre de distintos sitios web, quisa sea necesario obtener un DBA por medio de su jurisdiccion de operacion.
Normalmente, los clientes si obtienen el EIN, ya que es un requisito para la cuenta bancaria. El EIN es especifico a una LLC solamente.