How do I merge multiple sole-proprietor businesses?

Question

Owner has 4 small businesses & wants to merge them all together. Assets & liabilities still stay with owner but unsure of paperwork needs as far as IRS, state, etc. Other 3 will now be support for the primary one.

Owner has 4 small businesses & wants to merge them all together. Assets & liabilities still stay with owner but unsure of paperwork needs as far as IRS, state, etc. Other 3 will now be support for the primary one. All have division registrations for state taxing under primary one & separate Schedule C's for all 4.

Primary is growing so unable to equally focus on all 4.

All have division registrations for state taxing under primary one & separate Schedule C's for all 4.

Primary is growing so unable to equally focus on all 4.

Answer 1

Basically all he has to do is inform the clients of the 3 supporting companies that they need to call the main company. Put out a press release stating that he is merging all the companies under 1 umbrella. If there are any stocks that have been traded or investors he must notify those people too.

I personally would not merge any of the businesses together. You are taking away a good tax write off and compensation. Why do you think all the major corporations set up shell companies?

I worked for this one person and all he did was set up LLC's for everything he did including purchasing a shore home with his sister. This person we called him king of the LLC's. He has over 500 LLC's and keeps them active. I think his marriage is an LLC too.

Answer 2

The IRS could prefer which you report 2 schedule C's each of which will require an SE. whilst the kind 1040 is performed outcomes from the two schedule C's and seek engines would be blended on lines 12, 27, and fifty 8. to illustrate you have a loss of $a hundred on one schedule c and a income of $2 hundred on the different, your line 12 corporation income would be $a hundred. whether you will not be the 1st individual to easily combine each little thing onto one schedule C. in case you're audited you would be recalculating you tax return.

Answer 3

Talk to your accountant, s/he should know the appropriate means to consolidate the business into one primary and three subsidiaries as well as the tax code requirements.

Each State has its own tax code, and the Feds may allow you to use the your current tax reporting system, merely identifying the each subsidiaries in the respective Schedule C's

Answer 4

Go to http://www.score.org/ to find the nearest SCORE chapter. Contact them to arrange for a free one on one meeting with a SCORE counselor about merging your businesses.

SCORE is a nonprofit organization. They provide a public service by offering small business advice and training. .

SCORE's 10,500 volunteers have more than 600 business skills. Volunteers share their wisdom and lessons learned in business. The volunteers are working/retired business owners, executives and corporate leaders.

Answer 5

You have to register the Company and make the other working under the company's name and still have the its board of directors

Registration of the comany is not possible with sole propreitor ship