In a toss up. Im working on a plan to break into a niche market. Flood/Erosion Protection and prevention, providing mobile and onsite sandbagging, palletized prefilled sandbags, infrastructure and site flood/erosion protection,prevention and emergency/disaster response. Im taking the Lousiana business law exam and the Heavy Construction Exam in a few weeks. I already came up with a new company name, logo, etc... whats yalls opinion on i guess starting out new all over again? should i just run undermy current name and add a new division or start a whole new company and keep them seperate Current Company: One Krayzee Kajun Enterprises LLC (8yrs in business) 2nd Compnay name: Kajun Flood Workz, Inc. thoughts, opinions, :waving:
In my opinion I would start a whole new company for the new scope of work. I have three seperate companies and getting ready to start a forth at the first of the year. The main reason is **** does go wrong and it is better to keep things separate you don't want one part of your businesses to bring the rest of your operation down if **** happens. Over the last few years I have had problems getting developers, contractors, and even municipalities to pay. It is a little more paperwork but in my situation well worth it.
Welcome to the Forums YEC1998!:drinkup Very good advice, I second that business model.
Just got back from a meeting with my business attorney. We layed everything out and from a business outlook and a legal point. Its best to start the new company. We started the paperwork today.
Then if you use the same premises to operate out of ,,, the second company can pay rent to the the first company..... thats the way it used to work,,, if they change the tax code every thing could be out the window anyways...lol
One company owns the property (shop/office), another company owns the equipment, one company owns the transport, dump trucks, and another does the contracting. Then you can benefit from the accounting on how much each entity makes or loses.
That is very good advice YEC. The only reason you would want to include it in your first company is if you would benefit from it somehow, as in helping your first company make more than it would without the new division and if the new company would do better business wise, if it was attached to the first. Looks like it got it all figured out though and I bet you will soon see many advantages in having them separated. You'll legally have a little more freedom and will keep the risks down.