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Evri:1 of 1 people found this helpful
It's really going to depend on what you want to get out of this endeavor. What's your reasoning for a parent company and 4 subsidiaries?
Let's say I run into a contact that might love the pilot for my anime while I'm out there shucking and jiving trying to sell my music. Wouldn't it make sense to have some type of structure up. Business respects business. And I figured since, PUblishing, Music, Greetings and Pictures are all different fieilds in the entertainment and media industry for which I write. Wouldn't it be smart to have DBA's for each one under one umbrella? Do I do the one DBA at a time?, ( which will be smarter) Do I even need a Parent company? My reasoning basically is for each field to have its own identity separate from the rest because one doesn't have anything to do with the other. When I publish my book it would be under EvriThing Publishing, when I sell a screenplay or script made for TV it would be under EvriThing Pictures, song lyrics, EvriThing MUsic and Greeting Cards, EvriThing Greetings. Parent Company being EvriThing Enterprise. Is this the way I go about it?I need help.
There are many ways to set it up. I'm still unclear about why you want to set up different entities. If the only reason is to be able to call them different names, then several DBAs could be appropriate and you would only need one entity. If your issue is with liability protection, then you could set up four different entities with a parent corporation. I can help you determine exactly what you should do, just contact me, but without knowing the exact details of what you are trying to do and what state you are located in, its difficult to determine what you should do.1 of 1 people found this helpful
If you are going for liability protection for the separate entities, you can do a parent corporation with 4 subsidiaries. You could set up the four subsidiaries as S-Corps and the parent company as an LLC (presuming that you are the sole-member of the LLC). You could also set it up so that the S-Corp is the parent company, and the subsidiaries are LLCs. Another way to do it (in some states) would be to set up the S-Corp as a parent company, and then set up the four subsidiaries as "qualified subchapter S-corp subsidiaries" (QSSS), but this depends on whether the state where you register allows it.
What you eventually do will depend on your individual tax situation, and where your company will operate. It is also dependent on expected assets of the company as well as your individual assets. You should also note that states tax S-Corps differently. Some tax them exactly like C-Corps, some tax exactly the way the IRS does, and tax S-Corps minimally. Additionally, in many states there are "franchise fees" that are minimum amounts you have to pay to the state for every entity you have regardless of how much that entity makes in a given year.
A company with four subsidiary entities will produce a lot of paperwork year in and year out. If you aren't ready for that, DBAs may be the best way to go.
Regardless of what you do, I highly recommend you either speak to an attorney or a company that is familiar with regulations and organizing companies. You should have that person/company make sure everything is set up correctly so that you have the liability protection you are looking for. Let me know if I can help.
4 DBA's under an S Corp parent company I believe is the best. I live in New York City. Contact me please. 718 593 7600.
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I want to start a business but don't know what would be better. I am a writer of music (lyrics). A writer of movies (screenplays). An author (fiction & nonfiction) and a poet (greeting cards). #$%^ Enterprise will be the parent company that will house the 4 subsudiaries, Music, Greetings, Publishing/Books and Pictures(film and TV). What would be the best entity to go with, S Corp or LLC. There's only one owner and that's me.