Have 1 company or start one more? NEED HELP ASAP

[hejsweden]

Hello!

I am currently running 1 business.
Were i sell art/design, jewelry etc.

But, i have been thinking if i should seperate the business and start one more business only for the jewelry business.

The thing is that i focus worldwide on the art/design but the Jewelry i only target and sell 95% in denmark..

So what you guys think, should i seperate it? And focus straight on the jewelry in one business..


Many thanks for all the help i can get!

[Business Attorney]

Why do you want another entity? Although there are various reasons people set up entities, the primary reason most people do it is to protect the owner's assets from the entity's liabilities. Similarly, the main reason that someone sets up separate entities for separate businesses is to protect the assets of one business from the liability of the other business. Often, when I talk to people who want to set up separate entities, I find that neither business has substantial assets to protect or, if one business does have assets, the other business is a very low risk business that is unlikely to incur liabilities that would have to be satisfied out of the first business.

Which pattern do your businesses fall in? Neither of your businesses sound like they have much risk, unless the jewelry business has a lot of trade debt (money owed for goods purchased, most likely). Even if the jewelry business does have substantial liabilities, does the design business have assets to protect? I suppose that if your designs are unique and the business owns the copyrights to the designs, the answer could be yes.

If you are thinking about separating the businesses for non-legal reasons, such as marketing under different names to focus more closely on what the business is doing, you can do that without creating a separate entity. You can simply adopt another trade name.

[hejsweden]

Why do you want another entity? Although there are various reasons people set up entities, the primary reason most people do it is to protect the owner's assets from the entity's liabilities. Similarly, the main reason that someone sets up separate entities for separate businesses is to protect the assets of one business from the liability of the other business. Often, when I talk to people who want to set up separate entities, I find that neither business has substantial assets to protect or, if one business does have assets, the other business is a very low risk business that is unlikely to incur liabilities that would have to be satisfied out of the first business.

Which pattern do your businesses fall in? Neither of your businesses sound like they have much risk, unless the jewelry business has a lot of trade debt (money owed for goods purchased, most likely). Even if the jewelry business does have substantial liabilities, does the design business have assets to protect? I suppose that if your designs are unique and the business owns the copyrights to the designs, the answer could be yes.

If you are thinking about separating the businesses for non-legal reasons, such as marketing under different names to focus more closely on what the business is doing, you can do that without creating a separate entity. You can simply adopt another trade name.


That sounds about right.
The items have very big value, so we have a big stock.

The jewelry is what spikes the price up since we deal in very high end prices.


BUT, if the only ''benefit'' from starting a new company is the risk manegment then i think it might be worthless since we dont have any risk in that manner.


Is that what you mean by the ''risk'''