How many LLCs can I have?


Business owners often want to start new ventures or expand their business into different markets or segments.

Starting multiple LLCs is one way to do this and often times business owners wonder how many LLCs can they have?

As long as each LLC is separate and different, a single individual can actually have an unlimited number of LLCs.

There is no limit to how many LLCs you can have.

How to Create Multiple LLCs

Each LLC will be required to follow the same formation guidelines, which means filing a separate Certificate of Organization for each LLC.

The Articles of Organization needs to be filed with the Secretary of State and you have to pay the state filing fee every time you open a new LLC.

If you are forming multiple LLCs at once, you still have to pay the state filing fee for each LLC.

Some states require annual fees or annual reports that will need to be filed separately for each LLC.

The LLCs must all have unique names but the address and registered agent can be the same for all of the LLCs.

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We also recommend creating Operating Agreements for each LLC.

While operating agreements are not a requirement, they define ownership and membership interest in the LLC as well as the rights and responsibilities of its members and managers.

If multiple owners are involved or multiple membership interests, it is a good idea to outline the role of each member and/or membership interest in the operating agreement.

Each LLC may be structured differently and this is a good way to keep track of the structure of each LLC.

To learn more about forming an LLC you can visit our step-by-step guide here.

Owning multiple LLCs and potential conflicts of interest

Owning multiple LLCs can be complicated for a business owner and could lead to possible conflicts of interest.

For example, you wouldn’t want to be a member for LLCs that directly compete with each other.

Most LLCs require that members remain loyal to that LLC and being a member for competing LLCs could lead to the questioning of that loyalty.

Violating your loyalty and duty to an LLC can lead to you becoming personally liable for any damages or loss caused by your actions.

Some LLCs require a more involved membership and owning multiple LLCs could limit your ability to actively participate in the operations of each LLC.

This again could lead to the questioning of your duty of loyalty.

Let’s give an example of how owning multiple LLCs has the potential for conflicts of interest:

Say a business owner has a membership interest in a hair salon and also in a supplier of hair products.

The business owner wants to establish a relationship between the hair salon and the supplier of hair products.

Some states allow these types of relationships as long as the business owner is clear and transparent about their position in each LLC.

However, this could be viewed as a conflict of interest and a violation of the owners duties to the LLCs if not handled correctly.

LLC owners have duties and obligations to each LLC they are a part of such as duty of loyalty, duty of trust, and duty of care.

LLC owners also have a fiduciary duty to each LLC.

While there are no federal or state laws on how many LLCs a single person can be a member of, there are duties and these duties need to be met.

Benefits of multiple LLCs

Yes, owning multiple LLCs requires more paperwork and can get pretty complicated but there are also some benefits.

Having multiple LLCs limits your liability.

Limited liability companies already provide great liability protection to its owners  and making a different LLC for each new business further segments and limits any potential liability between companies.

Limited liability companies are also eligible for pass trough taxation, so opening new business ventures under LLCs rather than corporations gives you the tax advantages.

If you want to branch your business out into other segments, products, or services you can also consider opening DBA’s (Doing Business As) rather than starting multiple LLCs.

Learn more about DBA’s here.