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  1. #1
    spiteness is offline Junior Member
    Join Date
    Feb 2010
    Posts
    1

    Division question

    Started a business last year in Canada and have now been presented with a few opportunities. So it goes like this. The business started was a sales business, as in representation and of that nature.

    Fast forward a few months, we now have distribution as an option that we are really wanting to pursue.

    Fast forward a few more months, we are in a position to manufacture now and again we really want to pursue this.

    My question after speaking with an accountant briefly with is...

    because our name is a "Sales Inc." what would be the best way to division this out. Do we come up with a larger name and the "sales inc" can become one division under this larger umbrella, and we add the other 2 with their own unique company name, OR do we keep the "sales inc" and break the 3 sub divisions down under it with something simple like "Representation Division", "Distribution Division" and "Manufacturing Division" ???

    Thoughts? Ideas? It's Saturday so I can't get ahold of the accountant again until late next week.

    He did say that the 3 should be separate and we keep all financials separate under these (which is not rocket science) but I'm not 100% sure which is better from a legal standpoint in the event that say a claim/suit comes against 1 of the 3. I don't want it to be able to effect the other 2. He stated with having the separate divisions they couldn't as long as I was under a larger business type (as in Inc).

    Any feedback is appreciated.

  2. #2
    chanson is offline YE Veteran
    Join Date
    Mar 2007
    Location
    Canada
    Posts
    594
    I would do an umbrella and find a name appropriate to each individual entity. then you can brand your umbrella name later on if it gets to that point.

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