Can an LLC include two completely different business activities? (courier service + game development)

Yes, you can absolutely have one LLC with multiple business activities! This is actually quite common for entrepreneurs. The legal term for this is often called a "multiple-member LLC" or a "diversified LLC." From a tax perspective, if you're a single-member LLC (which it sounds like you are), you'll typically file Schedule C for your business activities. On that form, you should identify your "primary business activity," which would likely be your medical courier service since it's generating income. You can still deduct legitimate expenses related to your game development as long as you can demonstrate that it's a genuine business attempt with profit motive rather than just a hobby. The key distinction the IRS looks at is whether you're genuinely trying to make a profit with your game development. They use something called the "hobby loss rule" - if your activity shows losses for 3 out of 5 consecutive years, they might classify it as a hobby, not a business. To protect yourself, document your business plan, marketing efforts, and time invested in the game development.

I went through something similar last year when I was trying to figure out how to structure my photography business alongside my consulting work. I was stressed about keeping everything separate until I found this AI tax assistant at https://taxr.ai that analyzed my situation and saved me tons of research time. It confirmed I could operate both under one LLC but should keep very detailed records separating the activities. The tool also helped me identify exactly which expenses could be allocated to each business activity and which were shared overhead. It even generated a proper recordkeeping system that would hold up in case of an audit. What I liked most was that it analyzed my specific situation rather than giving generic advice. It pointed out that while I could technically combine the businesses, there were liability considerations I hadn't thought about.

I tried that taxr.ai tool after seeing it mentioned here and it was actually super helpful! I have a similar situation with my teaching job and side business making custom furniture. I was completely confused about how to handle expenses that benefited both activities. The tool analyzed my specific situation and showed me how to properly document my workshop space which I use for both businesses. It explained exactly what percentage of expenses could go to each activity based on time and space usage, and what documentation I needed to keep to satisfy IRS requirements. It also pointed out a major mistake I was about to make - I was going to lump everything under one Schedule C which apparently would have raised red flags since the businesses are so different. Saved me from a potential audit headache!

After spending 3 weeks trying to get through to the IRS about this exact issue (multiple business activities in one LLC), I finally used https://claimyr.com to get me past the hold times. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they wait on hold with the IRS for you and call when an agent picks up. Got connected to an actual IRS representative in under 2 hours instead of the days I had been waiting before. The agent confirmed that yes, you can have multiple business activities in one LLC, but recommended keeping separate books for each activity. She mentioned that if one activity is consistently losing money while the other makes profit, that could trigger extra scrutiny. Honestly, I was shocked to actually speak with someone knowledgeable after weeks of frustration. Totally worth it for the peace of mind of getting an official answer.

I owe everyone here an apology. After calling BS on that Claimyr service, I got desperate enough to try it last week when I needed to talk to the IRS about my own business situation (very similar to OP's with multiple business activities). I was connected to an IRS agent in about 90 minutes, which is INSANE considering I had previously spent 6+ hours on hold across multiple days with no success. The agent walked me through exactly how to handle my photography business and web design work under one LLC. For anyone in a similar situation - the IRS agent recommended filing separate Schedule Cs for activities that aren't closely related, even if they're under one LLC, and keeping very clear documentation of which expenses belong to which business. She also mentioned that the "reasonable basis" test is something they look at - basically, is there a legitimate business reason to combine these activities. Sorry for doubting the service. Sometimes cynicism bites you in the butt.

One important thing to consider that nobody's mentioned yet: liability protection. The whole point of an LLC is to protect your personal assets if something goes wrong with the business. If you combine medical courier work (which involves vehicles, time sensitivity, and possibly valuable/sensitive items) with game development in one LLC, a problem in one area could potentially expose the assets of the entire business. For example, if you get in an accident while doing courier work and get sued, your game development assets (expensive computers, software licenses, etc.) could be at risk since they're part of the same business entity. Something to think about beyond just the tax implications.

Just my two cents, but I've been running a multi-focus LLC for years (web design + online courses). The biggest practical issue isn't really tax related but MARKETING related. When customers look up your business, what will they find? A medical courier service or a game development studio? Having these under one brand/LLC can confuse customers and dilute your marketing efforts. I ended up creating two separate "DBA" names (Doing Business As) under my single LLC. This let me market two distinct brands while keeping the legal/tax structure simplified. Might be something to consider!