I currently have one business. It’s a S-corporation, filed in MT. I am looking to form another similar business in a related market as the first business, but I’d like it to have another name. What are my options here?
I am assuming I need the protection of making the 2nd business into a corporation, right? Because it is a business that deals with homes, and i’d like to protect myself in case of lawsuit, etc. Or is there any way I can just file the business name, but make clients make checks out to the first business’ name??? Would this be legal??? So, I could advertise w/the name I’d like, but then really it’s controlled by the first company.
Since i do the books for both businesses and run them with family, no employees, etc. do you think that i should make the 2nd company a subsidiary of the first???
I guess what I’m trying to say is that I’d like them to be the same company, but just with different names. Is this possible? If not, what do you think my options are?
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Print This Post
May I respectfully suggest you contact the MT Sec. of State or the registrar-recorder for the County in which your existing corporation is registered and inquire about the availabilty to file a fictitious business name for your new entity under the name of your existing S corporaton. The cost should be negligible and your result is operating two businesses under the control and operation of your original business operation. This is your intent, is it not?
Finally, should you open any further or subsequent businesses, anywhere you need the limited liability benefit, consider filing a LLC (Limited Liability Corporation). This may be treated as an “S” corp by similar election but does not require all the bells and whistle maintenance of a regular corporation. Your failure to precisely follow all formal corporate filing, reporting and record maintenance requirements for a corporation may result in your sacrifice of your limited liability intent.
Ask your tax preparer if you would be better off starting a new LLC and shut down your “S” corp.
Good Luck