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.
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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.