Sub-divisions to a company

[Yvonne]

I operate one company, but with three divisions, one name, one tax number etc.

Just operating the three divisions - accounting/Payroll/B.E.E./ and all the other returns required is more than sufficient nightmare!

Everything is administrated jointly, only figures are separated per division.

I have to wonder if the benefit you seek, is sufficient to warrant the major amount of administration required to achieve it.

Yvonne

[Dave A]

I share Yvonne's experience with this. There is extra work involved. You can stick with the plan - just expect questions every now and then together with a dose of frustration when it comes to filling in some forms.

You know why you are doing it and you can justify it.

As long as you aren't abusing it (such as using three of your divisions/brand names to bid on the same tender) no-one can really hold it against you.

[eitai2001]

Maybe there is a simpler way. What I want to do is have various websites all operating under the "Addiction" label, but with differnt for-words ... i.e.my frog addiction example. Hence why I am asking what is the best route. Basically, I know I have to trade under digital addiction, but on each of the websites, I want to distinguish the main reason for that website all within my related field. I.e. Computer Addiction for a website that just does computers ... even though the company name is Digital Addiction. How does Media 24 work, because they have many websites under their company, such as finance 24, news 24, etc.
Initially I will operate all the "Divisions" under one set of books, but if they get large on their own some time in the future, then I will hire employees to run the larger sections.

[Dave A]

An option:

You could send all your invoices from Digital Addiction. You can specify the website you are billing for as a line item. That takes care of all the red tape complexity.

From there, tracking and managing the relative performance of each website is similar to tracking the performance of different products.

If a website gets big enough to warrant setting up under its own company, Digital Addiction can sell the site to the new company you form for that purpose.

[eitai2001]

An option:

You could send all your invoices from Digital Addiction. You can specify the website you are billing for as a line item. That takes care of all the red tape complexity.

From there, tracking and managing the relative performance of each website is similar to tracking the performance of different products.

If a website gets big enough to warrant setting up under its own company, Digital Addiction can sell the site to the new company you form for that purpose.

That sounds like a good option, but what do you mean as a line item on the invoice? Because I need to put the products on the actual invoice.

[Dave A]

I think if you are selling something off Frog Addiction, the client might get confused if Frog Addiction doesn't appear on the invoice. Rather than change the company trading name for this purpose, just go

Frog Addiction - widget 1

or something like that.

[eitai2001]

ok, now I see what you mean. What about if I put somewhere on the invoice the following information:
Website Purchased From: Digital / Frog Addiction

Do you think that would work?
Then for my own records, I could create Debtor Accounts for each website name, and use that to separate them for reporting purposes in the books ... so I can determine revenue streams.

[Dave A]

Sounds good.