Can You Have Several Businesses Under One LLC? A Complete Legal & Tax Guide

Can You Have Several Businesses Under One LLC? A Complete Legal & Tax Guide

A common question among entrepreneurs and business owners is:
“Can I run multiple businesses under one LLC?”

The short answer is yes, you can operate several businesses under one LLC—but whether you should depends on liability risk, taxes, branding, and long-term growth plans.

This guide explains how multiple businesses can operate under one LLC, the legal methods available, pros and cons, tax implications, and when separate LLCs make more sense.

The Short Answer

✅ Yes, an LLC can operate multiple businesses

But there are different ways to structure it, and each has important legal and financial consequences.

3 Ways to Run Multiple Businesses Under One LLC

There are three common structures business owners use.

1. One LLC Using Multiple DBAs (Most Common Method)

A DBA (Doing Business As)—also called a fictitious business name—allows your LLC to operate under different business names without forming new legal entities.

Example:

  • Legal entity: Bright Horizon LLC

  • DBAs:

    • Bright Horizon Marketing

    • Bright Horizon Web Design

    • Bright Horizon Consulting

All businesses operate under the same LLC.

✅ Pros:

✔ Low cost
✔ Simple administration
✔ One tax return
✔ Easy to manage
✔ Ideal for related businesses

❌ Cons:

❌ Shared liability across all businesses
❌ One lawsuit affects all operations
❌ Less separation for risk management

This option works best for low-risk or closely related businesses.

2. One LLC With Multiple Business Activities (No DBAs)

An LLC can operate multiple business lines without filing DBAs, as long as it uses the same legal name.

Example:

  • Bright Horizon LLC provides:

    • Marketing services

    • Software development

    • Online courses

All revenue flows into the same LLC under one brand.

✅ Pros:

✔ No DBA filings required
✔ Simple bookkeeping
✔ One EIN and tax return

❌ Cons:

❌ No branding separation
❌ Same liability exposure
❌ Harder to sell or spin off one business

This is common for online businesses, agencies, and service providers.

3. Series LLC (Advanced Structure)

A Series LLC allows one parent LLC to create separate “series” for different businesses—each with its own assets and liabilities.

Example:

  • Parent: Bright Horizon Series LLC

    • Series A: Real Estate Rentals

    • Series B: Marketing Agency

    • Series C: E-commerce Store

✅ Pros:

✔ Liability separation between series
✔ Lower cost than multiple LLCs
✔ Centralized management

❌ Cons:

❌ Not recognized in all states
❌ Complex banking and accounting
❌ Not always accepted by lenders or courts
❌ Higher compliance burden

Series LLCs are usually best for real estate portfolios, not unrelated businesses.

How Taxes Work With Multiple Businesses Under One LLC

Single-Member LLC

  • Files one Schedule C

  • Reports all business income together

  • One EIN (usually)

Multi-Member LLC

  • Files one partnership return (Form 1065)

  • Issues K-1s to members

  • All businesses combined

LLC With S-Corp Election

  • One payroll system

  • One tax return (Form 1120-S)

  • All businesses combined for tax purposes

⚠️ Important:
You cannot file separate tax returns for each business unless they are separate legal entities.

Major Risk: Shared Liability Across All Businesses

The biggest downside of running multiple businesses under one LLC is shared liability.

Example:

If:

  • Business A gets sued
    Then:

  • Assets of Business B and C are also at risk

This includes:

  • Bank accounts

  • Equipment

  • Intellectual property

  • Cash reserves

If one business is high-risk, putting everything under one LLC may be dangerous.

When It Makes Sense to Use One LLC for Multiple Businesses

Using one LLC is usually appropriate if:

✔ Businesses are low risk
✔ Services/products are closely related
✔ You want simple bookkeeping
✔ You’re testing new ideas
✔ Revenue is still small
✔ You don’t need separate branding legally

Common examples:

  • Marketing + consulting

  • Coaching + online courses

  • Freelancing + digital products

  • Content creation + sponsorships

When You Should Use Separate LLCs Instead

Separate LLCs are the better option if:

❌ One business is high-risk
❌ You want strong liability separation
❌ Businesses are unrelated
❌ You plan to sell one business
❌ You have partners in only one business
❌ You want separate investors
❌ One business generates significantly more income

Example:

  • Real estate + consulting

  • Construction + online sales

  • Healthcare services + retail

DBAs vs. Separate LLCs: Quick Comparison

Feature One LLC w/ DBAs Separate LLCs
Cost Low Higher
Liability Separation ❌ No ✅ Yes
Tax Filings One Multiple
Branding Flexible Fully separate
Risk Protection Low High
Scalability Limited Strong

Bank Accounts & Bookkeeping Best Practices

Even under one LLC:

✔ Use separate bank accounts for each business line (recommended)
✔ Track income and expenses separately
✔ Use accounting software with class tracking
✔ Maintain clear internal records

This improves clarity—but does not create legal separation.

Can You Add Businesses Later Under the Same LLC?

Yes.

You can:

  • Add new DBAs

  • Expand business activities

  • Launch new brands

Just be sure to:
✔ Update licenses
✔ File new DBAs if needed
✔ Inform banks and payment processors
✔ Maintain clear accounting

Does One LLC Limit Growth or Investment?

Potentially.

Investors often prefer:

  • Clean ownership

  • One business per entity

  • Clear financials

If you plan to:

  • Raise capital

  • Sell one business

  • Bring in partners

Separate LLCs are usually better.

Common Mistakes to Avoid

❌ Assuming DBAs create liability protection
❌ Mixing high-risk and low-risk businesses
❌ Poor bookkeeping between business lines
❌ Forgetting local DBA requirements
❌ Using one contract for multiple brands
❌ Ignoring insurance needs

Final Answer: Can You Have Several Businesses Under One LLC?

✔ Yes, legally you can.

⚠️ But liability is shared across all businesses.

Best choice if:

  • Businesses are related

  • Risk is low

  • Simplicity is your priority

Better to form separate LLCs if:

  • Risk is high

  • Businesses are unrelated

  • You want maximum protection

  • You plan to scale, sell, or raise funds

For many entrepreneurs, the ideal approach is:
👉 Start with one LLC → use DBAs → separate later as businesses grow

Get Free Consultation with FormLLC  

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