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6 Replies Last post: Apr 20, 2009 12:44 PM by LUCKIEST

Grouping companies under one umbrella

Apr 20, 2009 9:19 AM

alpha3915 2 posts since
Apr 20, 2009

I have an Insurance and a Tax Preparation service. Both companies are registered under different structures. One a Corporation and the other an LLC. I did it this way to keep all expenses and other items sepearate including bank accounts. As both businesses continue to grow it just leads to more headache like two tax returns, etc.

I would like to consolidate under one assumed name eg. ABC Group LLC or Inc. One of the tax advantages is filing one tax return instead of two. Additionally I can offset tax liability from one company with losses in the other under the group filing.

Are there any other benefits or disadvantages I should be concerned about?

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LUCKIEST 7,928 posts since
Aug 6, 2007

1. Re: Grouping companies under one umbrella Apr 20, 2009 10:24 AM

Grouping companies under one umbrella, Welcome

Since you have two growing businesses, do you have an Accountant??

Who are you?? Go to Members page and share some info.

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dublincpa 165 posts since
Jan 29, 2008

2. Re: Grouping companies under one umbrella Apr 20, 2009 11:18 AM

Not knowing what state you are in, makes it tough. Does your state offer Series LLCs?

Anything you do that involves liquidating the corp or the LLC in an S election was made, could cause a taxable event. Proceed with caution.

Feel free to contact me with details. bankcardcpa@gmail.com

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BizOptimizer 22 posts since
Apr 14, 2009

3. Re: Grouping companies under one umbrella Apr 20, 2009 11:54 AM

You should probably consult an Attorney AND an Accountant on something as serious as this. Not only would there be tax/accounting ramifications, but now they would share liability and if one made a bad financial mistake - both incomes would be at risk to be lost.

THere are many ways to simplify things without opening yourself up to so much risk. Plus, it is a lot of non-productive time/expense spent making the change that could have been promoting them.

Good luck,

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dublincpa 165 posts since
Jan 29, 2008

4. Re: Grouping companies under one umbrella Apr 20, 2009 12:06 PM

in response to: BizOptimizer

There are likely multiple options that would allow for separate liablity.

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alpha3915 2 posts since
Apr 20, 2009

5. Re: Grouping companies under one umbrella Apr 20, 2009 12:37 PM

in response to: dublincpa

My business is in the state of NY.

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LUCKIEST 7,928 posts since
Aug 6, 2007

6. Re: Grouping companies under one umbrella Apr 20, 2009 12:44 PM

in response to: alpha3915

Grouping companies under one umbrella, Ok know we know that your business is in N Y

Who are you?? Go to Members page and share some info.

Again, LUCKIEST

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ForumsTaxes and Payroll

This Question is Possibly Answered

Grouping companies under one umbrella

Apr 20, 2009 9:19 AM

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