Forums: Discussions for entrepreneurs and small business.

So my friend an I recently started a technology consulting company. It's based in NJ and it's an S Corporation.

We have an idea for an online sevice which is not related to the consulting business.

The service will be free at first and then if it becomes popular it will become a paid service for some users.

So now the questions I have are:

Is it better to simply launch the new business as a product of existing company or start a new company?

Any advantage of doing an LLC as opposed to S Corp?

Considering the fact that we will potentially have customers in every state (and possibly in Canada and UK) do we have to register our business with every state? I know we should definitely have a trade mark but is registration necessary in every state? Google seems to be registered everywhere so I assume it is?

Thank you

Michal

It is mostly a matter of control over the entity you want to build and the operational details going forward.

1. If you don't have a separate company, you can't really sell it easily.

2. If you have LLC and not S corp, you have issues with potential investors, especially ones from outside the US. You can't get foreign investors with LLC.

3. You don't have to register LLC in every state. I have an internet business selling globally and I have LLC. The question is how to collect and report revenue and pay taxes.

4. And mixing 2 completely different businesses into one entity is not a good idea unless you are certain about your partner and you are not going to make big changes in the control structure.

Hope it helps,

Valery Zelixon

Managing Partner, Peer Evlauations LLC

http://www.supplierevaluations.com

Not sure about how to answer your questions about the best type of entity to start because I don't know your situation. As for the issue of starting a new company or just adding an extension to your existing company, I think that would depend on HOW unrelated the two businesses are.  Would they either target the same customers or have functionally similar purposes?  If not, I would suggest that you start two seperate companies because you don't want to confuse your customers down the road.

Thank you both for suggestions.

The business would be completely different so I guess a separate entity is a more appropriate approach.

I was thinking of putting it under the current company so that the parent could get some exposure as the company who developed the service. But I guess that can still be done even with the two entities setup.

you can offer paid services as early as possible, as long as you offer quality..

I'm not entirely sure, so I am asking this basically: isn't it better to start 2 companies, so  in case one goes bankrupt, or just doesn't do well, you have another one that could blossom independently. It would take lots of time and organizing, but isn't it safer?

Hi friends,

As I think it is better to launch the new business as a product of existing company than start a new business as you have to advertise your business and product if you launch new website. If you use previous website then it also have it branding and people may be know about it but in case of new website you have to promote your product as well as your website also.

The online internet market is the best way to sell and purchase anything’s.  In online Selling you have to search for the organizations which are working as a mediator. In online selling you go for different websites and after searching them you have to contact with them online. They have data of different organizations which are interested in Buying a Business These dealers give all the details of the buyer. This is very helpful because it’s very difficult to find buyers in a short period of time. If they will go for online then they will save their timings and utilize these saving times into different things.

The e marketing is the best venue to read the reviews and ratings of the products. You get to meet a varied customers and hear there experiences in order to know the short comings of the product or the services. The wide spectrum of portfolio of products can be easily viewed and compared before making the final purchase decision.