Subsidiary or NOT?

Discussion in 'Business Operations' started by cutman2000, Dec 21, 2012.

  1. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    If and when I start another company, that may compliment, but not necessarily enhance the parent, could I avoid registering it under the parent but still call it a division or subsidiary of the original company or parent? Would that be unlawful?
     
  2. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,402

    Not at all. Assuming you want a distinct name for it, just file for a Fictitious Name/DBA. Just be aware that your taxes and liabilities are intertwined.

    Disclaimer: check with your state, an attorney, and blah blah blah
     
  3. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    Well the name/company will be LLC or INC
     
  4. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,402

    Ahhhhhhhhhhh, I reread your original post. I read it as you wanting to start a new company and have it as a division, but what you want to do is keep your company of Coke, start a company called Pepsi, not have them be actually related, but state/market/imply that they are?

    If I'm now following you correctly, is there any non-marketing reason you want to do this, or is it just to say that the new company is related to the older, recognized name? One thing I think it would do, and while not an attorney, is that it could open the companies up to cross-liability by the ol' piercing of the corporate veil.
     
  5. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    Well yeah, I want to eliminate the cross-liability.
     

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