Second business?

Hi everybody... I am new to this site. Just happened upon it and thought how great.

I have a question... I have a business now (incorporated)and just started a second. I have not decided if I should set up the second as a seperate business (incorporated) and was wondering what the benefits would be to do so. I've heard there are many benefits in doing so. Anybody have any thoughts they'd like to share.

Sonia

 

It can be beneficial in that you can enter into contracts etc with the new company and if it doesn't work out just walk away (by winding it up) leaving your first business in-tack.

Downside, 2 x tax returns, 2 x bank accounts, 2 x BAS statements each quarter etc. Just all the other stuff x 2

Seek advice if your unsure but considering how cheap it is to start, run a basic PTY LTD I see no reason not too (add about $6k to close one down with no debt or legal action underway). I actually have 4 company's, 3 in Australia, 1 in New Zealand. 1 of the companies is used to deal with difficult suppliers and is an 'entity' which is exposed to all the risk, etc so getting a structure in place is a good idea!

 

Well one advantage is for asset protection, use another vehicle to run the other business. However, if its low risk, then offsetting those pesky start up costs against the already running businesses profits may be more favourable.

I'd recommend you get professional advice and perhaps a couple of options that take into account of where you're at now and where you want to be in respect to both businesses and your own assets.