How do I establish a Subchapter S for a business that has three divisions/brands?
I live in New York City and have been advised by an accountant to file a Subchapter S. My main concern is that I have one main company that has three "brands" under it. How would I organize these three distinct brands/companies/divisions within the umbrella of the main company? I want to set it up so that it would be presented well to the public and also would be manageable behind the scenes in running the business.
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.