Subsidiaries

[telecom_prog]

Hi, I'm Tim from Virginia.

I have an S corp and I would like to offer a new service under a different name, a subsidiary.

I do not want to start a new company just for this additional service that I would like to offer, but I unfamiliar with how subsidiaries work.

Do I need to register the subsidiary with anybody or can I just use it like ... xyz, a subsidiary of bla bla?


Thanks,
Tim

 

[hexeliebe]

I do not want to start a new company

Then you won't get a subsidiary. A subsidiary is a company that is owned by another company, usually 100% owned.

Another problem you're going to run into is that if the subsidiary is ever sued, as owner your s corporation will also be sued.

Why don't you want to offer this service through your existing company?

 

[telecom_prog]

Thanks for the post, it all has to do with the name of my company.

My company name is Telecomprogramming Inc. The new service I want to offer is network support, PC maintenance, general office wide computer support. So since my company name doesn't reflect this service very well I thought that a subsidiary would be the way to go.

Is there an alternative to this?

Thanks,
Tim

 

[hexeliebe]

Sure there is and it's a very simple one. Change the name of the company to reflect the new additional services.

Then you'll have an advertising hook built in.

 

[telecom_prog]

I never thought of that, great suggestion.

Thank you very much,
Tim

 

[hexeliebe]

sometimes the hardest decisions are the one that bit you in the ass last week and never let go.

good luck.