Form 1 Corporation for Multiple Small Businesses?


I am currently doing Freelance work as a programmer. I also would like to try a few ideas for some small Drop-shipping style eCommerce websites.

What I am wanting to know, is can I form a single Corporation with a friend and run all these small businesses under the Corporation? Or do I need to form a separate corporation for each business?

The main reasons I would prefer to not do it for each business...

  1. They will all be very similar in what they do. For example thew eCommerce sites will all be the same, just different products on each site. Like a different Niche market for each store.
  2. I would have a partner so I think it would be easier to manage 1 corporation
  3. Cheaper to form 1 corporation and manage with all the yearly fees, etc
  4. A lot of these small businesses/sites will be testing if they work or not, half of them might fail completely and be shut down or changed to a different market/niche

What are your thoughts on this?

Incorporation Corporation

asked May 22 '13 at 07:38
111 points

2 Answers


Definitely one business (it doesn't even have to be a cooperation, sole proprietor or a partnership will do just fine).

Just think about having to manage separate bank accounts, separate accounting, separate payrolls, etc. not to mention filling you tax forms separately for each company.

If you have one business that is more likely to get sued you may want to separate it into a different cooperation so if someone sues you he can't get the money out of all your other businesses - but other than that you really want to have just one business entity to manage.

This is no legal/accounting advice, even if it was you shouldn't get legal advice from random people on the internet, contact a local lawyer and/or accountant for specific advice

answered May 26 '13 at 21:01
1,569 points



I'd say you can develop a product and spin it off once it becomes a success and needs more than your TLC to make it work. (once you start hiring a larger number of people solely for the purpose of developing/supporting that product) I imagine those spin offs can be managed though a holding company of some sort. (That's how it would work where I live)

answered May 23 '13 at 20:32
101 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Incorporation Corporation