Post a new topic
    3 Replies Latest reply on May 13, 2012 4:43 PM by UncleLeon

    Opening a 2nd Location - Have Qs

    hconnections Adventurer

      Here's the scenario.

       

      Store 1 has been opened for about 7 years. It's a corporation with one owner.

       

      Store 2 is currently being built but owner has brought in a 49% shareholder of the company to manage Store 2.

       

      The 40% shareholder will not partake in any profits or losses for Store 1, however owner of Store 1 is not planning to establish a new Tax ID# for Store 2 and all sales, profits and losses for both stores will be filed under one tax return next year.

       

      Bookkeeping for each store however, will remain separate.

       

      Is there a way for Store 2 to be it's own name and tax ID# "doing business as" the same name as Store 2? They would therefore file it's own tax return.

       

      If owner of Store 1, matter-of-factly wants the two stores to operate under the same Tax ID, then I"m guessing separate reporting will not be able to be done in respect to filing sales tax returns and Quarterly employer tax returns, etc.

        • Re: Opening a 2nd Location - Have Qs
          LUCKIEST Guide

          Great questions Ktasha

           

          I do not want step on anybody toes, so before answering your Q's

           

          I have one.  Do you have YOUR accountant?? YOUR lawyer??.

           

          LUCKIEST

          • Re: Opening a 2nd Location - Have Qs
            UncleLeon Scout

            The "cleanest way", and IMHO the best practical way, is to have two distinct biz entities.  What's the big deal.  You don't even need to pay a lawyer to do this.  Now days you can form your corp or LLC online for a hundred bucks + or - , buy the corporate book at your local biz supply store, and spend a few dollars additional on end-of-year accounting.

             

            I STRONGLY suggest that you do this, keeping the "partnership" biz seperate.   You can spend a few dollars now, or you can spend thousands of dollars later, when you and your partner come to a legal battle over which 'business" contributed what.

             

            If you STILL won't do this, (as was suggested previously), I suggest that you have a bt of "close-order-drill" withn your accountant.