Can an LLC Corporation Run More Than One Business?

Yes, a limited liability company can be formed for any lawful business purpose or purposes. So, under the LLC laws, there is no restriction limiting an LLC to only doing one business activity. One LLC can run both a consultancy and a store for example.

Having said this, many entrepreneurs form a separate LLC for each business. This is because everything owned by each LLC will be subject to the business risks of all activities in the LLC. For example, if a real estate investor owns three properties and all of them are owned and managed by one LLC, then if a problem with one property arises, all of the properties are at risk. Say, a tenant slips and falls in one property and gets a large judgment beyond the insurance limits. In this case, the other properties are reachable by the tenant to fulfill the judgment.

Now, some LLCs are formed as holding companies to own interests in multiple businesses. This is another great method. The holding company LLC only owns stock or LLC interests in other businesses so is never at risk for business problems. Under it are other LLCs or corporations which run the multiple businesses.

Bottom Line. Yes an LLC can run more than one business but if may be wroth thinking about whether the added liability protection for each business is worth the small costs to form multiple LLC entities for your businesses.

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