Strategy
Forming a second Delaware LLC: when to separate operations into multiple entities
Some founders form multiple Delaware LLCs for different businesses or risk separation. Here is when this makes sense.
When multiple LLCs make sense
Different industries with different risk profiles: ecommerce (product liability) + SaaS (data liability) often separated. Different brand identities: parent brand and sub-brand often separated. Different investor groups: ventures with different investors typically separated.
Threshold for considering separation: each business generates $200K+ revenue independently. Below this, complexity exceeds benefit.
Costs of multiple LLCs
Per LLC: $297 formation + $110 Delaware fee + $300/year franchise tax + $50-125/year registered agent + $500-1,200/year CPA + BOI report and 5472 obligations. Total per-LLC year-1: $1,257-1,932; ongoing: $850-1,625/year.
5-year total cost for 2 LLCs vs 1: incremental $4,250-8,125.
Alternative: Series LLC
Delaware Series LLC creates internal series (cells) with separate liability protection at lower cost than multiple separate LLCs. Federal tax treatment of series is unsettled; engage tax adviser.
Not all states recognize series; risk in foreign-qualification scenarios.
Form your Delaware LLC with Delewarellc
$297 + Delaware state fee, one-time. 8-10 day turnaround. Multilingual founder-led support.
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- BOI report under the Corporate Transparency Act: 2026 status update