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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hi, I have an existing service business as an S corp

This answer was rated:

Hi,

I have an existing service business as an S corp and now want to start selling products retail. I will also be purchasing these products wholesale for use in the service business. Considering running under a different name for retail saless, but not sure yet. So, for tax purposes OR a tax advantage, should I form a separate company for the retail sales or just keep it under the current structure?

Megan C :

Thanks for your question, and thanks for using JustAnswer.com. How are you today?

Megan C :

I would keep an S Corp structure to optimize tax savings. You could either keep the business in your existing S Corp or create a new S Corp or LLC taxed as an S Corp to handle the retail sales.

Megan C :

IT would be up to you. It would be more of a legal/liability decision than a tax decision.

Customer:

Thanks Megan, as far as ease of accounting etc. I guess it would be best keeping it under current S Corp, but I guess I couldn't have a second name like a DBA or something?

Megan C :

Yes, you could register a DBA for the retail sales, if you wanted

Customer:

Would that be something that would have to be officially registered with state and feds and require new or second tax id # ?

Megan C :

A DBA would be registered with the state, but you would use your existing Tax ID number for your S Corp

Megan C :

It's just the business operating under a different name. It's not a separate business.

Customer:

ok

Megan C :

Do you have any other questions?

Customer:

that's it...

Megan C :

Okay if you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Megan C and other Finance Specialists are ready to help you
Thanks, Chris for your positive rating. Please come back and visit me for any of your tax, finance, or social security needs. It was a pleasure working with you today.