I have an s corp whose irs tax code is a specific business activity. I'd like to start adding two or three other activities that have nothing to do with the existing business activity in any way. My question is, should I:
1. Create completely separate companies for each activity
2. Create divisions under the existing company
3. Just do all activity in existing company and not worry that much about it?
Basically, does branching out into activities outside of your tax code create the need to start new companies, or is there a tax code that is very general, like "holding company" or something like that?
Thanks in advance!
You should consult, in-person, with a tax attorney and/or a tax professional with experience in business entity accounting and taxation.
Creating separate companies might seem ideal in order to separate the individual activities, but it will increase your costs, particularly in terms of reporting and compliance with federal and state authorities.
Conversely, if the activities are combined (or grouped), then disposing of just one activity can present issues.
You should consult, in-person, with a tax attorney and/or a tax professional with experience in business entity accounting and taxation.
Creating separate companies might seem ideal in order to separate the individual activities, but it will increase your costs, particularly in terms of reporting and compliance with federal and state authorities.
Conversely, if the activities are combined (or grouped), then disposing of just one activity can present issues.