Wanting to create another startup, should I create another LLC?


I already have one "startup" going, which is my web development job on the side. I have created an LLC for that. I now what to start another startup in a whole other industry. It will basically just be selling diet-related products (books, supplements, equipment).

Should I group these two businesses together under my current LLC, or should I create a new one? Also, is an LLC good enough for the diet industry? I hear of a lot of diet-related lawsuits, and since I am not a certified doctor, should I get more protection?

LLC Incorporation Legal

asked Sep 23 '10 at 22:52
1,340 points
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3 Answers


Your first question comes up frequently. The trade-off is saving money (single entity) vs. protecting one business against fallout from the other (two entities). This issue is discussed in the post "Do I Need a Separate Corporation/LLC for My New Business? ". Only you can decide which way to go.

Regarding the second question, any business should have commercial liability insurance. Beyond that, you should consult with an insurance broker.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

answered Sep 24 '10 at 08:19
Dana Shultz
6,015 points


While you can technically operate the two under one LLC and maintain the same protection, it sometimes makes sense to make them two separate LLCs for accounting purposes, branding, etc... This will require more taxes when you start out, though, so just make sure that you understand the extra money involved. You should definitely get a license if one is required for your work as well as liability insurance as a corporation or LLC can not always protect you from liability.

answered Jan 4 '11 at 12:33
Alex Naegele Lawyer
653 points


It sounds like these are so very different that they certainly should be separate legal entities.

Is an LLC good enough for the diet industry? You really need to consult a lawyer who can review exactly what you are planning to do and make a recommendation to you. There's just no way that you can get a reliable answer from an Internet group with the description "selling diet-related products (books, supplements, equipment)."

Please talk to an attorney.

answered Sep 24 '10 at 03:05
191 points

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LLC Incorporation Legal