This post is based on a question I have seen online many times. Q. Can I have a corporation with multiple businesses?
A. Yes, you can have a corporation with multiple businesses. Furthermore, those businesses need not be similar or related. So, for example, your corporation might do both software development and per sitting.
However, there is a more important question. Should you have a corporation with multiple businesses?
There is a significant potential problem with having multiple businesses under a single legal entity (corporation or limited liability company). Debts or other liabilities associated with one business might overwhelm the entity, thus destroying the other businesses.
So, before you put multiple businesses under a single corporation, you should ask yourself the following questions.
- How great is the risk that failure of one business might destroy the others?
- Are there steps you can take, such as purchasing appropriate types and amounts of insurance, to reduce or mitigate that risk?
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Dana H. Shultz, Attorney at Law? +1 510 547-0545? dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.