For Subscribers

Three-Ring Circus What you need to juggle several startups at once.

By Cliff Ennico

Opinions expressed by Entrepreneur contributors are their own.

Question:I'm just starting out in business and want to run two or three different businesses simultaneously until I see which one works best. Do I have to have a separate corporation or limited liability company for each business?

Answer: Probably not, since a corporation or LLC can operate under multiple trade names. Here are the steps you do need to take:

1.Form a corporation or an LLC under the name of the parent company.

2.File a "certificate of assumed name" with your secretary of state's office for each business name your corporation or LLC will be using.

3.Get federal and state tax ID numbers for the parent company only--not each business.

4.Open a separate checking account for each business as [name of parent company] doing business as [business name]. Make sure cash and checks are deposited into the correct accounts and keep separate books and records for each business.

If you run your businesses out of different brick-and-mortar locations, it might make sense to form a separate corporation or LLC for each business, so if someone slips and falls at one location, he or she won't be able to reach assets at the other locations.

Similarly, if one of your businesses is, by its nature, extremely prone to lawsuits (for example, running a children's day-care center), you should consider forming a separate corporation or LLC for that business. Also think about taking out a huge policy of liability insurance for that business, so a judge isn't tempted to pierce the corporate veil and expose your other businesses to liability.

Cliff Ennico is a syndicated columnist and author of several books on small business, most recently Small Business Survival Guide. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.

Cliff Ennico is a syndicated columnist and author of several books on small business, including Small Business Survival Guide and The eBay Business Answer Book. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

How I Went From Side Hustle to 7 Figures Using These 4 AI Tools (No Tech Skills Needed)

Scale faster, work less and grow a 7-figure business — no team needed.

Health & Wellness

How Mastering Your Nervous System Boosts Leadership Presence and Performance

Discover a modern leadership system designed to boost your effectiveness, reduce stress and bring more clarity and joy to how you lead.

Business News

Here Are the 10 Highest-Paying Jobs with the Lowest Risk of Being Replaced By AI: 'Safest Jobs Right Now'

A new report from career resources platform Resume Genius finds the top 10 AI-proof careers expected to see the most growth within the next decade.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Samsung Is Looking into Making AI Necklaces, Earrings, and Other Wearables: 'All Kinds of Possibilities'

A Samsung executive confirmed this week that the company is working on smart glasses, with plans to expand to other types of wearable devices.