Can there be multiple businesses under an LLC company? Can the same LLC operate in different industries?
Yes, you can have more than one business under an LLC and operate in more than one business. In companies formed in Turkey, this can be done by adding a title (nace code), but there is no such obligation in Usa and the situation is different and simpler than ours.
You can manage two or more businesses under an LLC by choosing one of the options below.
- Conducting all business activities under the same roof as a single LLC
- By registering DBAs, also known as fictitious names, under your LLC
What is a DBA?
When a person or company wants to do business in a field other than its legal name, it can do so with DBA registration. This Doing Business .
The term DBA is used and known by most states, but each state refers to it by a different technical name. The most published ones are:
- Assumed Name
- DBA (doing business)
- Doing Business As
- Fictitious Name
- Trade Name
- Trading As
Is DBA Registration Necessary? Is there a problem if it is not created?
There will be no problem in this regard and it is not necessary to create a DBA for every add-on marketplace. You can run both e-commerce and grocery stores with the same LLC, if your company name has a general structure that suits it. Otherwise, it may not be understood by customers.
Whether an LLC can have any DBAs (Fictitious Names) is up to you. So, you don't have to file a DBA to operate multiple businesses under an LLC, but you're free to file one or more DBAs if you wish.
What are the pros and cons of running a business under a single LLC without DBA registration?
Pros:
- It is less costly and it is easier to test products and services. You can get to work immediately.
- The starting phase is very simple. (But if things start to get bigger, control problems may arise)
Cons:
- Liability risks may be large; if it is a business that will grow in the future, DBA registration makes sense.
- It becomes difficult to keep accounting records in trade transactions in different areas.
Does it make more sense to form separate LLC companies instead of DBA?
In some cases, an LLC can be formed for each business line to limit the problems that may arise and to completely separate all businesses from each other. The main advantage of this is that you can file a lawsuit, etc. against the LLC running in a different industry. If it is opened and its activities are stopped, the other one will not be affected.
How to Register a DBA?
To do this, you can hire a lawyer or contact your registered agent. this link for the list of registered agents . Your registered agent will register your DBA at a more reasonable price than an attorney, the attorney may be slightly more expensive.
Conclusion:
You can do business in multiple industries with the same LLC, but this has its pros and cons. DBA registration serves to name your businesses on a sectoral basis by creating fictitious names. Creating a DBA is not required, but it is entirely up to you to decide in which situations it is necessary.
