If you have one incorporated business can you add another business within the same corporation?
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If you have one incorporated business can you add another business within the same corporation?
My dilemma is this, I am currently incorporated with a candle and scented products business. I would like to get into the jjanitorial/office cleaning business. Is there any way I can include/umbrella it in? Or do I have to start a completely different entity.
Asked on July 21, 2011 Virginia
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Do you want to keep both intended businesses (candle and office cleaning) separate and distinct from each other for personal and business reasons? It seems that you probably do because the two lines of businesses are completely different from each other and with different risks.
If you want to have both businesses under the same corporation, you can do so, but keeping track of how each does financially can be complicated unless you have a good book keeping system.
You can set up an insurance policy for both business lines under one corporation. Make ysure you tell your insurabce broker about both business lines and make sure you have adequate insurance coverage for the operations of both to protect you from personal liability.
Good luck.
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