Hi, All!

The title is my main question. Further, I have a number of small businesses that I operate. Can anyone of them be incorporated or maybe even all of them as a group? Does it matter the type of business that one of them might be? I'm really naïve in this particular area, but I do know how to market, advertise and promote the businesses that I run. They're all out of my home.

Maybe I should have phrased my original question better. But, this is confusing to me because it would seem to be a multi-faceted issue.

Thanks!

Yes it can Clough, you may incorporate all of them individually or incorporate one and possibly have the others (no matter what they are for) as subsidiaries. It is best to have an attorney involved, however it is possible to incorporate in your state without one.

Or, you can incorporate as a Holding Company. http://www.britannica.com/EBchecked/topic/269181/holding-company

Stringer

Hi, Stringer!

So, are you saying that I couldn't incorporate all of my businesses as a group lumped together?

Thanks!

Clough, you could certainly place more than one, or even all, of your biz activities into a single corporate entity.

Pro: Cheaper. Each corporation requires incorporation costs (usually not very expensive if you do the paperwork yourself--a bit more expensive if an attorney handles it. Check with your state's Secretary of State website on info re setting up a corporation.)

Con: Greater liability risk. Dividing your business assets and activities across multiple corporate entities usually provides a stronger liability firewall. For example, if you have two businesses wrapped inside a single corporation, and a lawsuit is initiated against the corporation, the assets of both businesses are potentially exposed to that risk. But if the two sets of assets were in separate corporations, a lawsuit against one of those corporations only exposes the assets of that one business to the risk.

That greater degree of liability protection (with the multi-corp arrangement) comes at a cost, though--in order for the multi-corporate structure to be respected by a court in the event of a lawsuit or damage claim, you'll have to show that you've also respected the corporations as separate entities yourself. That means that they each have their own checkbook; you haven't been moving funds back and forth between the entities willy-nilly without valid biz reasons; stuff like that.

Finally, if you go the incorporation route, be sure to pow-wow with a tax accountant early on. There are certain choices and decisions that can be made with respect to the tax status and treatment of the corps, and making the right choices can really provide some nice benefits.

Cheers!

Thank you for your informative and insightful answer, ArcSine!

Hey, Stringer!

What did you think of the answer by ArcSine, please?

You know the things that I do to make a living...

Thanks!