Should I incorporate several business ideas into one company or create separate companies for each idea?

learn more about Tim Berry

By Tim Berry

Opinions expressed by Entrepreneur contributors are their own.

I have a few online business ideas, I was wondering if it would be cost-effective to incorporate a sole company to act on behalf of each e-commerce website? Or do I need to register or incorporate each seperate business?
As far as I know (and I'm not an attorney) there's no hard and fast legal rule for this, but my advice is make your first business successful before you start your second; which means incorporate and register one, make it happen, and only after that worry about whether you are -- and how you are -- going to incorporate and register a second.

For the record, incorporation doesn't protect or reserve a business idea, just a name, and if you don't use that name commercially, the incorporation doesn't even protect that. Ideas aren't owned. Patents are available for inventions and copyright for creative works, but you make an idea yours by building a business, not by incorporating an entity.

Tim
Tim Berry

Entrepreneur, Business Planner and Angel Investor

Tim Berry is the chairman of Eugene, Ore.-Palo Alto Software, which produces business-planning software. He founded Bplans.com and wrote The Plan-As-You-Go Business Plan, published by Entrepreneur Press. Berry is also a co-founder of HavePresence.com, a leader in a local angel-investment group and a judge of international business-plan competitions.

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Business News

Amazon Is Starting to Let Customers Know What Products Are Returned Often

The e-commerce giant has begun flagging certain items that were frequently sent back.

Business News

'Crying Northwestern Kid' Turned His Viral Fan Moment Into a Successful Harvard Admissions Essay. He Says the Experience Taught Him About Empathy.

Six years ago, Phillips was watching No. 8 Northwestern take on No. 1 Gonzaga during March Madness when he became a meme.

Leadership

5 Challenges Leaders Are Facing Right Now (and How to Overcome Them)

Leaders who can find solutions to post-pandemic challenges are poised to thrive.

Green Entrepreneur

This Meatball Is Mammoth. Seriously, It's Made From the Prehistoric Woolly Elephant.

A food startup introduced lab-grown, cultivated meat using the DNA of the 4,000-year-old extinct animal.