Having Multiple Businesses under one Limited Liability Company

You CAN have multiple businesses under one Limited Liability Company. You can run two or more than two businesses under one LLC by:

• Either running all your businesses under one LLC name
• Or running your businesses by registering DBAs (doing business as), Fictitious Names.

Keeping a fictitious name for your business is all up to you. You do not have to file a DBA for running multiple businesses under one LLC. But you are allowed to file for a DBA anytime you like. You can look for the advantages and disadvantages of running multiple businesses under one LLC by reading below.

Running Two or more Businesses under one LLC

Advantages:

• Easy to test business products, offering, and models.
• It would cost you less as you would need one articles of organization and one annual report for your LLC.
• It is simpler in the beginning

Disadvantages:

• All liability would be under one LLC so the liability risk is higher
• As all the businesses are under one LLC, the finances and books are altogether which can make it confusing

If you are among the people who have little money, you would be among the ones going for multiple businesses under one LLC.

But if you have enough money and are experienced business person, you must be among those who are confident in their work and have formed multiple LLCs for your multiple businesses.

Is it necessary to register a DBA for my LLC?

No, it is not necessary to register a DBA for your Limited Liability Company. It is like a ‘nickname’ for your LLC. DBA is also called Trade name or Assumed name or Fictitious name. You can have a DBA for every type of business that you run. Alternatively, your LLC can also do business under the true name. It is all up to you and the way you want for your business.

Advantages and Disadvantages of Running a business with DBA

Advantages

• It is a good idea if you want to expand your business into a second brand by remaining under a single entity. You do not receive any additional legal rights protections after you register your DBA.
• Registering a DBA can keep administrative costs lower for you. You do not have to own separate bank accounts or operating agreements for all of your businesses.

Disadvantages

• A DBA does not create a separate business for you, it is a part of the one main LLC.
• If you operate multiple businesses under one LLC, they all share liability. If one brand gets sued, your LLC will be sued.
• DBA will not separate or shield your LLC from the debts and obligations of other businesses.

Does it mean that it is better to have two LLCs instead of one then?

Many people choose to limit their liability and thus choose two LLCs instead of one Limited Liability Company. If you have one LLC for multiple businesses, the exposure to liability will also increase. If your LLC sells some online products but also has a physical store. Then if anyone complaints about your online product, your store will be in danger as well.

Advantages of creating separate LLCs for every Business

• It protects each LLC from the liabilities of your other LLCs.
• For example: A teacher may decide to form an LLC for his cafe. If he is not good enough in his profession then nobody can go after his cafe business. Thus his business is protected.

Disadvantages of creating separate LLCs for every Business

• To create an LLC for every business means separate fees and paperwork. This also includes registering articles of organization for each company, maintaining separate agreements, filing annual reports, and paying fees for each of your LLCs.
• Each LLC must also obtain a separate EIN along with a business license and permits. Each LLC must also have its own bank accounts.

Separate Bank Accounts

When you decide to form multiple LLCs, you not only have to keep all business activities separate but also a separate LLC bank account. You also have to keep a separate set of books via some online software or spreadsheet.