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How do I add my cleaning business to my s-corp day care business?

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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Attorney answers (1)

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As a practical matter, you may be able to add the janitorial services to the existing S-corp. However, the number of practical hurdles will likely necessitate a new entity for the new services. The reason being is the fact that day care services and janitorial services are both very unique and different businesses, complete with different clientele, liabilities, vendors, equipment, etc. In addition, you will likely want to have two separate brand names which presents DBA issues. Given the fact that janitorial services could have a high degree of liability associated with them (equipment rentals, location issues, slips and falls), you would porobaly not want to expose your current day care operation to those liabilities, a new entity is likely the way to go for that reason alone.

I hope that helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.

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