How do I establish a Subchapter S for a business that has three divisions/brands?

min read
Opinions expressed by Entrepreneur contributors are their own.
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.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur