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How do I add my cleaning business to my s-copr day care business?
Worcester, MA
Viewed 21 times.
Posted about 1 month ago in Business
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I have an s-corp for my day care business, and now my husband and 2 siblings and i would like to open a janitorial business. How do i make it part of the s-corp we already have, or should I? Can I open it as a DBA under the already established s-corp?
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Answers (2)Lyle Andrew Wallace
This attorney is licensed in Colorado.
Posted about 1 month ago.
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Unless the S-corp day care business will have the same ownership as the janitorial business you will need to establish a separate entity. You will want to set up a separate entity for each business anyway for liability protection purposes. In addition, there may be advantages to setting up the new entity as a limited liability company as opposed to an S-corp. For instance, if distributions will be made out of the entity in a manner other than pro rata based on ownership, an LLC provides the required flexibility. There are advantages and disadvantages to both structures so you will want to talk to your CPA and a business attorney licensed in your state about what you want to do in the business, capital and ownership structure and exit plan.
Henry Lebensbaum
This attorney is licensed in Massachusetts.
Posted about 1 month ago.
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I agree with Lyle.
You could also modify the mission or purpose statement on your filing |