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    12 Replies Latest reply on Mar 12, 2018 7:42 AM by moderator_ani

    Business Structure

    jenbchosen Newbie

      I am currently have two businesses that I am forming. My question to anyone that can help is this. Can I form one legal entity and then branch both businesses off that one entity or do I have to create two separate entities? The two businesses are one an online Ebay boutique and the second an online Tea Business.

        • Re: Business Structure
          moderator_lisa Pioneer

          Hello, and welcome to the community. It sounds like you'll be pretty busy once your business ventures take hold. That's great! 

           

          While I was not able to find any specific articles related to your question, I did find this older conversation. While it's not open for new comments, you may find that the reply answers your question.

           

          New business: confused by type & structure...

           

          You might also enjoy Celebrating Women Entrepreneurs, along with a great selection of expert articles especially targeted to women entrepreneurs.  I hope you'll take a look around the forums, jump in wherever you feel comfortable, and let us know if you have any questions.

           

          --Lisa

          1 of 1 people found this helpful
          • Re: Business Structure
            moralshell Wayfarer

            I believe it depends on the state you're starting the business in, and what type business structure you have. For example, in Florida, you can have a business that incorporates for "any and all lawful business" ... therefore you can use that business name for multiple services or sales. For example: "XYZ Services, Inc." can be for handiman work, bookkeeping, selling quilts & yard work. That can get tricky as well because each of those "branches" will need to have the same accounting structure, or it won't work. It's probably best to start with your state's department of commerce, then look into IRS requirements. Some states are simpler than others. I know that was a roundabout answer, but it's what I've learned from my research. (I'm in Florida). jenbchosen Best wishes on your endeavors! Shelley

            1 of 1 people found this helpful
              • Re: Business Structure
                jenbchosen Newbie

                Hi Shelley,

                 

                I am in Texas so it is easy to form a business here. Wondering if there was anything else I should be aware of but I believe you explained it all. Thanks so much, I appreciate it.

                 

                Jennifer

                  • Re: Business Structure
                    moralshell Wayfarer

                    No problem, glad I could help.

                     

                    Shelley

                     

                    Sent: Sunday, November 5, 2017 3:10 PM

                    To: Shelley Morales

                    Subject: Re:  - Business Structure

                     

                    Business Structure

                    reply from jenbchosen in Business Startups - View the full discussion

                     

                    Hi Shelley,

                     

                    I am in Texas so it is easy to form a business here. Wondering if there was anything else I should be aware of but I believe you explained it all. Thanks so much, I appreciate it.

                     

                    Jennifer

                    Reply to this message by replying to this email, or go to the message on Small Business Community Start a new discussion in Business Startups by email or at Small Business Community Following Business Structure in these streams: Inbox

                • Re: Business Structure
                  miranda right Wayfarer

                  Nice question!

                  Of all the decisions you make when launching a new business, probably the most important one relating to taxes is to choose the proper legal structure for your company.

                  Here are the most common forms of business

                  - sole proprietorship,

                  - partnership,

                  - corporation

                  - and S corporation. A more recent development to these forms of business is the limited liability company (LLC) and the limited liability partnership (LLP). Because each business form means different tax consequences, you will want to make your choice wisely and choose the structure that most closely matches your business's needs.

                  While researching this issue, I've come across the topical article https://www.millforbusiness.com/difference-between-firm-and-company/. It disclose the difference between company and firm I have never known about

                  • Re: Business Structure
                    moderator_ani Adventurer

                    Hi Jennifer,

                     

                    It is perfectly all right to have multiple streams of business under one registered entity. A good accounting software will also enable you to track the income and expenses under different heads should you need to evaluate the two at some stage.

                     

                    We would be very interested in the progress you make, so please do share milestones with us!

                     

                    ~Ani