If I operate multiple types of businesses, e-commerce and consulting under an LLC, in order to save money is it possible to do just one LLC under which to open and close different businesses?
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If I operate multiple types of businesses, e-commerce and consulting under an LLC, in order to save money is it possible to do just one LLC under which to open and close different businesses?
I have e-commerce and consulting businesses.
Asked on September 18, 2019 under Business Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, a single LLC can engage in multiple types of businesses and could have, for example, several DBAs, one for each type of business. There are pros and cons to doing this:
PROs: save costs, less paperwork. More flexibility to move or deploy money from one business line to another, if necessary; more ability to take business losses in one line as a tax deduction, since you may have profits from another line of business to apply them against.
CONs: Less liability protection: if you have, say, three businesses operating under one LLC, all three are potentially vulnerable to a lawsuit against, or liable to repay a debt owed by, one of the businesses, since they are all part of the same entity.
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