How do you go about creating a business that owns multiple business like many corporations do today?

Question

i.e. an umbrella with subsidiary businesses
is there a specific type of incorporation? how much does it cost?

Answer 1

You simply start a business and then as you encounter new endeavors, you would start new sub-businesses, i.e. home building, home rental and management, building supply company.

You can use sub-S corporation, partnership, or C-corporate structures. The cost is nominal, but I cannot delineate an exact cost; less that $500 per entity for sure unless you use a CPA, then it will cost more. I recommend using a CPA firm.

Answer 2

incorpoate one business & then incorporate others giving ownership to the original business. Or the original company can buy other businesses taking ownership as the legal entity

registration fees to set up a corporation are nominal.

Depending on how you are going to raise money, market shares to others, tax implications, & other issues, you registration options may be limited & requirements varied.

Typical forms are c-corporation, s-corporation, limited liability company, general partnership, limited partnership, & professional corporation.

Check your secretary of state's website or talk to a business attorney for more detailed information that is specific to your needs.

Answer 3

Compared to offline businesses, the investment required to start an online business is minimal. A popular way of earning money on the internet is by providing information and services. This can be monetised by advertising or charging a subscription. You can also make money online by selling products on auction websites like eBay or through your own website. More information available at http://tinyurl.com/syw6m

Answer 4

you start with one biz.

you buy another one that fits well with your first ( core) biz)
repeat.

company/incorporation papers will probably need to be changed along the way.