How do I establish a Subchapter S for a business that has three divisions/brands?
Enter the Project Grow Challenge presented by Entrepreneur and Canon USA for a chance to win up to $25,000 in funding for your business. Deadline is Sept. 15 2015. Click here to enter.You can certainly have three brands within the umbrella of a single company. You'll need an attentive and bright bookkeeper to set up your books to account for the three lines of business separately.
However, if one of the brands tanks, it can affect the fortunes of the other brands as well. In addition, the decision of whether to form a Subchapter S corporation or an LLC (or even a C Corp) has legal implications for the future of the company.
If you have any thought of seeking investment capital to grow your business, you'll have a difficult time doing it with an S Corp. Speak to a business attorney to lay out all of the issues of formation and growth to confirm that this really is the right form for you.