Some start-up companies logically break into separate sections, where they develop a product and want to go after different marketplaces. There are some very complex tax issues associated with having different divisions of the company and you have to make sure that you think through having those tax issues or you form separate companies related to your parent company. The issue of LLC versus corporation comes out. Corporations don’t have capital gains treatment, which is a very big piece to the puzzle. You need to think those through in a different way than you would in forming an initial entity. You should have help in doing that.
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