In this article, we will be looking into how you can effectively manage multiple businesses with the help of the ONPASSIVE ecosystem. As an entrepreneur, you can realize at one point or the other that they have various ideas for activities.
The question of starting in all the cases is still the same.
How can ONPASSIVE help you successfully structure and manage multiple businesses under a single entity?
One of the best ways this is possible by structuring different ventures under a conventional roof. It is a common strategy primarily done and incorporated with the help of large corporations.
Many international conglomerates exist, such as Disney or Coca-cola. These types of conglomerates have a dozen various smaller subsidiaries, which are all grouped under a single entity.
Small businesses usually utilize the same structures and help to gain the same kind of benefits. The two primary ways you can accomplish this with ONPASSIVE are:
A single company with multiple businesses:
- Well, you can structure various companies in forming a separate company and register fictitious names for individual activities.
- A good visualization of this form of managing your companies is like owning one big house with different rooms.
- For example, if you own a bakery and want to shift ventures to fresh produce and fresh fruit. Instead of running three different product lines, a much simpler solution would be to file two DBAs.
- A DBA is essential as it does not create a new entity but also allows your company to operate under various names legally.
- The biggest drawback with multiple DBAs is that many various ventures are under a single roof. It is usually perceived as a liability.
- During documentation, it may look like you are operating multiple companies, but truthfully only a single entity exists.
- In case there is a judgment against your company, you can end up with assets being seized not just from one but all your businesses.
The single property, different buildings:
- Another option is to get a holding company, as they do not conduct any actual business.
- The primary function of these holding companies is to own or hold assets, and you can form additional entities.
- A right way of visualizing this is when you have a large property (your holding company) with which you can also build multiple independent structures (various companies).
- This scenario is significantly more expensive, and you would need to form more than a single entity.
In conclusion, if you have multiple businesses under a single roof, ONPASSIVE can help you to manage them effectively. Therefore, it is the best decision to get yourself associated with ONPASSIVE as soon possible so that you can be free from all your worries.
We hope you found this article informative in understanding how to manage your numerous ventures better. Thanks for reading!