Hidden Giants: Surprisingly Large Businesses Still Operating as LLCs

While most people assume successful businesses inevitably gravitate toward incorporating, it’s not unheard of for larger companies to maintain LLC subsidiaries for key operations. In fact, many of America’s largest corporations have been quietly doing so long after outgrowing their small origins.

This isn’t a random strategy or gimmick, it’s a deliberate choice in order to enjoy the operational flexibility of an LLC structure while maintaining corporate benefits for capital raising and governance.

The question, therefore, isn’t whether these arrangements make business sense (they clearly do), but rather: how do these giants use this entity structure to actually support their success, and what can we learn from them?

Why LLCs Often Transition to Corporations

Conventional business wisdom suggests that as companies grow, they should transition from LLC to corporate status. The reasoning behind this is sound: corporations offer established frameworks for public trading, smoother paths to raising capital, and provide familiar structures for international operations.

On top of this, they also benefit from a corporate tax rate of 21% on retained earnings, which can be highly advantageous for larger businesses that carry over substantial profits from year to year (even despite the “double taxation” they’re liable to pay). 

By contrast, Limited Liability Companies (LLCs) have been traditionally seen as the ideal starting point for small businesses as they offer significant operational flexibility while maintaining crucial liability protection. 

The fact that their business income is only taxed once at the individual level makes them highly attractive for enterprises that distribute most of their profits to owners — while simpler administrative requirements and lower compliance costs also mean they’re better suited for young companies focused on growth.

As such, it’s easy to assume that total incorporation is inevitable for any company once it reaches a certain size. Yet, as we’ll explore below, several of the world’s largest businesses have chosen to defy this soft rule — maintaining LLC structures as subsidiaries to benefit from the resulting operational flexibility.

Major Companies That Operate as LLCs

In the sections below, we’ve broken down examples of some of the largest companies in the US that you’ll be surprised to find out still take advantage of the LLC structure.

Amazon Services LLC

Despite Amazon’s parent company being a corporation, its subsidiary Amazon Services operates as an LLC and is responsible for handling the vast majority of the company’s core e-commerce operations.

The subsidiary handles everything from seller onboarding and support to payment processing and dispute resolution for millions of independent merchants worldwide, effectively serving as the backbone of Amazon’s marketplace ecosystem.

Google LLC

Though under the umbrella of parent company Alphabet Inc., Google continues to run the world’s most dominant search engine and digital advertising business with an LLC.

Beyond search, this subsidiary also manages an extensive portfolio of internet services — including Gmail, Google Maps, Google Cloud, and the Android mobile operating system — to collectively serve billions of users daily.

IBM Credit LLC

Since converting to LLC status in 2003, IBM Credit has functioned as a critical financial services subsidiary of IBM — handling everything from hardware leasing and software licensing to loans for IT infrastructure projects.

Chrysler Group

While now part of Stellantis, Chrysler Group operates as an LLC while managing extensive manufacturing operations across North America — producing everything from family sedans to heavy-duty trucks and off-road vehicles.

Hertz Vehicles LLC

One of the world’s largest vehicle rental operators, Hertz manages a fleet of hundreds of thousands of vehicles across more than 12,000 locations worldwide.

Beyond traditional car rentals, they’ve also expanded into luxury vehicle rentals, car sharing services, and long-term leasing solutions for both individuals and businesses — remaining an LLC even despite its immense size.

ExxonMobil Sales and Supply LLC

This subsidiary of ExxonMobil Corporation handles the complex logistics of the global energy business’s distribution network — managing everything from crude oil transportation to refined product delivery and coordinating massive supply chains that connect extraction sites to refineries and consumers.

Johnson & Johnson Group LLC

Operating as a subsidiary of the larger Johnson & Johnson corporation, this LLC manages various aspects of the company’s consumer healthcare products division.

In particular, they oversee the development, production, and distribution of everyday healthcare items ranging from baby products to over-the-counter medications.

As these industry giants demonstrate, LLCs can scale to extraordinary heights while maintaining their fundamental benefits — but you don’t need to be the next Alphabet or Meta to take advantage of this business structure.

Why Some Big Companies Remain As LLCs

When examining many of these business giants, it quickly becomes apparent that they often operate as LLC subsidiaries within larger corporate structures.

This hybrid approach reveals a sophisticated strategy that combines the best of both worlds — providing corporate stability at the parent level with the flexibility of an LLC at an operational level.

But what drives multi-billion dollar enterprises to adopt this arrangement? For the most part, the reasoning behind the decision can be owed to one or more of the following key advantages of LLCs:

• Operational Agility: LLCs offer remarkable operational agility, allowing subsidiary divisions to adapt quickly to market changes without navigating the more rigid decision-making processes required of corporations.
• Tax Efficiency: By structuring major operational units as LLCs, parent corporations can save themselves huge amounts in tax by strategically distributing profit distribution and reinvestment. This structure can result in significant savings, particularly for divisions handling large-scale operations or managing substantial revenue streams.
• Privacy Advantages: While parent corporations must maintain transparency with shareholders, LLC subsidiaries can operate with greater discretion regarding their internal workings. This is particularly valuable for units handling sensitive operations or proprietary technology (e.g., ExxonMobil’s supply chain management or IBM’s credit services).

However, this structure isn’t without its challenges, as managing LLC subsidiaries can create complex administrative burdens — particularly around tax filing and compliance across different jurisdictions.

There’s also the risk of reduced transparency making it harder to attract certain types of investors or partners who prefer more standardized corporate structures.

Additionally, some industries face regulatory requirements that make corporate status more practical, especially in sectors where public trust and oversight are paramount (e.g., banking and insurance).

Is an LLC Right for Your Business?

With the examples we’ve explored in the sections above showcasing how LLCs can work for these massive companies, you’ll likely be wondering whether this is the right decision for your business too.

Ultimately, however, the decision regarding your business’s structure isn’t a cut and dry one, as it will largely depend on your specific circumstances and goals.

With that being said, we would generally recommend following the traditional advice of keeping your business as an LLC if most of the following are true:

• You plan to reinvest most profits back into operations rather than distributing to investors
• You value operational flexibility and quick decision-making
• You have a small group of committed owners who want direct involvement in management
• You operate in a field where protecting proprietary information is crucial
• You prefer simpler administrative requirements and lower compliance costs
• You want the option to convert to a corporation later as needs change

However, you might want to instead consider incorporating your business if more of the following statements apply in your situation:

• Your business needs to attract outside investors or venture capital
• You plan to go public in the foreseeable future
• The business will carry over large amounts of profit from year to year 
• You operate in an industry where corporate structure is preferred by regulators or partners
• Your business needs the enhanced credibility that comes with corporate status 

Remember that — as we’ve seen with companies like Google LLC and Amazon Services LLC — you’re not necessarily locked into a single structure forever, and that many successful businesses adopt hybrid approaches or transition between structures as their needs evolve.

Note: If you’re still unsure which of these two structures to go with, check out our in-depth LLC vs Corporations guide for more detailed information.

Large Businesses That Are Still LLCs FAQs