In this article, we will be looking into the major elements of setting up and structuring multiple businesses. In today’s economy, small business owners can earn an income through a variety of different ventures.
When you are running multiple business projects, you would be wondering what the best ways in structuring ventures are. It would be best if you consider questions from both the marketing and legal perspective.
You should consider markets and target customers for newer ventures, and you should answer questions, from a legal and marketing perspective. You should find markets and target customers for each investment.
Your businesses need to target different customer types, and you need to use different websites, business names, and branding for each venture, and The GoFounders platform immensely helps to build different business teams. You must be synergistic and relevant, in appealing to the same customers.
How to structure multiple businesses?
There are three ways to structure multiple businesses, which are legal:
Creating a separate corporation/LLC for each venture:
- You can quickly form a corporation or LLC for every single business venture.
- This approach results in considerable paperwork, and you will need to file separate forms, such as annual reports and meeting reports.
- If you have formed corporations, you would not need to file separate tax forms for each corporation.
- This is great if you are looking to minimize your advertisement requirements and considering other options.
Having a corporation/LLC with multiple DBAs:
- Another option is to create a leading company as an LLC or a corporation. Once the LLC or corporation has been established, you can file fictitious business names as well.
- Each business should have the right name and branding for a specific market, and you can still enjoy legal protection with this.
- When you are filing your taxes, you can take the income generated from each DBA and report them under a single tax filing under the leading LLC/corporation.
Corporation/LLC with other corporations/LLCs under the leading holding company:
- Another approach is for a holding company to own individual corporations or LLCs for multiple businesses.
- This scenario often comes into the light for playing into companies that are looking to be acquired.
- This also applies to cases for an established company that is looking to start a new business.
- An established or holding company will help to fund the new business as well.
- The taxes and legal implications can become even more complicated as well, with changing scenarios.
In conclusion, this is an overview of how to structure multiple businesses from just a simple starting point. In the end, if you are working hard to build your business, you must make sure that you are doing everything in your power to save your business.
Save that there are GoFounders now that assist you with each of your ventures flawlessly with community help, team building, and other aspects that are required to set up and structure any business. Thanks for reading!