new business

Discussion in 'Business Operations' started by i_plant_art, Feb 27, 2006.

  1. i_plant_art

    i_plant_art LawnSite Senior Member
    Messages: 558

    Got a few questions. Ive got a business that has been going strong for 3 years now and am wanting to start another business. I am htinking of making one of the business a "division" of the other one. Or starting 2 new business and having the existing one ( landscaping ) -compay A; the new one (xxxxxxx) company B; and the the third, comapny C; to just be set up so that the other 2 can be divisions of the third one. My questions are as follows:

    1. If C is the mother company and A& B are baby companies do you need to have 3 tax returns or just one for C which would include a & b?

    2. do i need, would it be better to have 3 seperate business licenses even if all are in the same city or would one be suffice?

    3. if C is Inc. should a&b also be or would LLC be suffice?

    4.would it be better to just make a the division of be and have no C or to have C with a&b as divisions?

    Im thinking of having C with a&b as divisions but then i think of it has needing to have 3 ins policy 3 license. 3 phone numbers etc etc. alo needing to have 3 tax return ......... i am thinking of never advertising C just a&b C is more or less ( in my mind) to make things simpler.

    Thanks for any info.
  2. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    I really think this question needs to be posed to an attorney!
  3. BCF

    BCF LawnSite Member
    Messages: 107

    This question reminds me of algebra.:dizzy: I agree, you should talk to an accountant.
  4. i_plant_art

    i_plant_art LawnSite Senior Member
    Messages: 558

    im goignt o talk to my attourney and accountant they will be the ones who set all of this up for me so i know that it is done right. i was wanting to know what you guys thought about it ................
  5. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    Unfortunately I don't know enough about it to give you a good answer. What is the other business? Is it a lot different than your current one? If its similiar I don't think you would have to make company c at all. I think company a could be ran as a subsidery of company b

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