# Multiple businesses



## PTS (Dec 21, 2005)

I am venturing out once again and reopening my Grandparents Snapper Dealership. It was one of the largest in Eastern Iowa and has been dead for two years. I was given the business by my Grandparents who were thrilled that someone in the family was willing to reopen the doors. I am moving it to my shop which will be more convenient for the customers.

Anyway... I was curious how many of you juggle more than one business? Concerns I have heard is efficiency with both and being able to keep up. I don't doubt the quality of work being such a perfectionist. What problems or unseen items/things did you run into? 

Next did you run both or multiple under the same business as far as the books go. I need to meet with my accountant to get his opinion but whats yours. Advantages/Disadvantages.

Looking forward to your thoughts.


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## ASD (Dec 21, 2005)

incorporate all your company's as an "S" corp. that way you can balance the p and l of all of them and if some thing happen's to one you are still protected.


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## Newfie (Dec 21, 2005)

What about the disadvantages to your family life?


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## PTS (Dec 21, 2005)

Pretty fortunate. No kids and wife is on board. Fortunately we have been able to get things established and built then we will plan a family.


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## Dadatwins (Dec 22, 2005)

I prefer an LLC to an s-corp because of the ease of setting it it up. An LLC can be set up much easier than an s-corp and still offer the same protection from liability. S-corp is nice setup but there are more fees and accounting that must be done. LLC sets up like sole prop. with income 'passing down' to owner/operator, but without the liability in case of problems. Just another option for you to look at. I will be setting up my own LLC after january 1 this year as my side biz grows to protect my assets. 
Side note, retail is a real bitter animal to deal with, do you have a RELIABLE and TRUSTWORTHY person to operate the biz? Not sure of the scale of your new biz, but I ran a few retail stores for a few years and it was a 24 hr/7day a week headache. Lot of stress involved. 
Good luck in the new biz.


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## kennertree (Dec 25, 2005)

My wife runs 2 businesses. She runs a storage business for her father and runs our tree service. She does a great job with both. The storage business pretty much runs itself. Just alot of paperwork which is mostly done on computer. Good luck with your new business hope all goes well and prosperous in the new year also.


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## rfwoodvt (Dec 27, 2005)

Dadatwins said:


> I prefer an LLC to an s-corp because of the ease of setting it it up. An LLC can be set up much easier than an s-corp and still offer the same protection from liability. S-corp is nice setup but there are more fees and accounting that must be done. LLC sets up like sole prop. with income 'passing down' to owner/operator, but without the liability in case of problems. Just another option for you to look at.




Something to keep in mind about the LLC though...You can form an LLC with both the husband and the wife as members, even as the only members. 

However, and this is a BIG However, the courts and the law view a husband wife LLC as a simple partnership more often than not and have on numerous case law situations declared husband and wife LLC's exempt from the liability protection.

As much as I agree with Willy Shakespear about lawyers this is one time to spend the $150 to $200 to get the advise on how to structure the business to protect your assets, especially if it is a spousal team.

Here in VT we can have a single member LLC, which is what I did. This keeps my business separate from the home. Instead of being a member (partner) my wife will be hired by the LLC in an administrative capacity.

Definitely take an hour to talk with a lawyer. He might even prep the papers for your business entity for the same visit.


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## bottlefed89 (Jan 4, 2006)

From what I understand rf is correct, be a single member llc, and employ the wife.

I have other small business's, a small local delivery company (basically I haul mail to post office's at night for several bulk mailing companies) and my tree service. I find keeping them completely seperate to be the only way that works FOR ME. I run them under the same name, but different books, and different checking accounts. It is too hard for me to keep track of expenses, and keep a firm grasp on profits/losses with the business's being too close together. I want to see without having to look if one business is pulling the other along...


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## PTS (Jan 4, 2006)

We are currently set up as a single member LLC and it does work well as long as I can keep getting her to work all month for $50-$100. But when she starts wanting more, I'm in trouble


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## treeman82 (Jan 4, 2006)

Anybody I have ever done business with who had multiple companies always had SEVERAL different bank accounts and all that. 

A good friend of mine runs a couple of different businesses. He, his wife, and a secretary are able to keep up with most of it, and I help out now and again along with several other people. He's a doctor, a landlord, avid day trader, wine distributor, heart rate monitor sales company, and at night he puts on a cape to go out and fight crime. In all seriousness though, he leads a very stressful life, never any peace. If you can deal with that, then more power to you.


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## Redbull (Jan 4, 2006)

treeman82 said:


> Anybody I have ever done business with who had multiple companies always had SEVERAL different bank accounts and all that.
> 
> A good friend of mine runs a couple of different businesses. He, his wife, and a secretary are able to keep up with most of it, and I help out now and again along with several other people. He's a doctor, a landlord, avid day trader, wine distributor, heart rate monitor sales company, and at night he puts on a cape to go out and fight crime. In all seriousness though, he leads a very stressful life, never any peace. If you can deal with that, then more power to you.



Treeman made a good point about stress. I know you don't have kids now, but things change dramatically when you do. It can be done, but sacrifices are gonna be made. Unfortunately for kids (and family in general) the business thrives while the kids are left to fend. Just something to think about.


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## dingo (Jan 10, 2006)

I have had a sawmill, logging company, small engine repair and a farm going at the same time. I was younger then and had a lousy family life, but plenty of money. I was fortunate that most of the kids flew right. If I had it to do over again I would run one business and run it well. You get more sleep and enjoy life more. Stress is not healthy and we really don't need all the things money can buy. Just a thought/


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## B.Secord (Jan 11, 2006)

I also have been burning the candle at both ends like dingo. The farm and the tree company, require me to allocate my time very carefully. PTS, your decision to take on a family legacy is admirable, just a word of caution, make sure that its you and yours decision. Even with good intentions family members can (and probably will) inject their will into the old Family business.
The other thought I have is that in your part of the country, you could probably get buried in work as the operator of two semi-seasonal companies. I would just about bet that you won't have to worry about starting that family from about April through October, you may not even get to see each other. 
Anyway, I wish you the best of luck in your future endevours, and remember, money can't buy happiness, but it makes being miserable a little more enjoyable!!! 

Good luck,
Brent


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## BlackenedTimber (Jan 13, 2006)

I run several different companies under one "mother company," i guess you could call it. We have our arboriculture division, We have a forestry division, a trucking division, site preparation div, and an excavation division, as well as an entertainment/promotions company. I personally really only enjoy the Arboriculture and Forestry work to everything else, with a little loud music on the side. However, the way that I keep everything moving without having a heart attack is simple: Find good people, and let them do thier jobs. If they screw up, make sure that they learned from thier mistake, and dont let it happen again. If it does happen again, can 'em. Simple as that. My people work very hard for me, and we do a damn good stroke of business. By having good people to help you out, you dont take the full burden of the business. You can manage things on a much more broad scale, than having to micro-manage every detail. And, I must say, I have a rather happy and fullfilling family life. Good luck with the snapper dealership, I think you will do just fine.


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