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Company and sub businesses

Discussion in 'Music Business' started by josephfleck, Oct 13, 2009.


Do music businesses have sub businesses within a large company?

  1. yes its normal / legal

  2. No bad idea! nobody does this

    0 vote(s)
  3. other let me explain why

    0 vote(s)
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  1. josephfleck

    josephfleck Guest

    I am thinking of starting a business.

    I would have a company (.biz) then two sub businesses one a record lable and the second a third party music publication company. is it legal/normal to have a company with two sub busnesses within that company?

    Example would be Google, there sub busnesses are you tube / google search engine etc
  2. MadMax

    MadMax Well-Known Member

    Mar 18, 2001
    Sunny & warm NC
    Home Page:

    Interesting proposal... kinda'.

    Business operations quite commonly have supporting business entities. However, it is usually because of things such as merger's and expansion of business models that involve purchase of other incorporated business entities.

    There are several advantages and disadvantages to actually forming completely separate corporate entities.

    The primary disadvantages are the tax filing paperwork, extensive bookkeeping, inventory management, payroll, etc.

    Advantages, of course; if you can keep all of the above correct and can actually pay dividends to your stock holders and make your payroll, along with whatever benefit package you can provide.

    Another advantage could be realized should any arm become less than profitable and become necessary to sell it off.

    Different states may have different regulations, but it's common here to have a parent corporation under which it may operate storefront businesses with different names. You should speak to an attorney and your tax specialist regarding which type of corporate structure and business structures are to your benefit to explore.

    This could become a very interesting thread...
  3. MadTiger3000

    MadTiger3000 Active Member

    Nov 16, 2004
    Totally legal.

    It varies according to your goals/mission as to how many sub-businesses (normally called subsidiaries) a business would have under the umbrella organization.

    A client I have, for example, needs a for-profit subsidiary to handle speaking engagements for himself, where he would then share the expertise that his nonprofit organization possesses.
  4. josephfleck

    josephfleck Guest

    okay great! thanks guys, it all sounds really complicated but i think i will dive in, I want to create a online music distribution and publication company when clients can go online to my website and buy a service for a price and in return we put there music out there for whatever service they have purchased. similar to tunecore. i have another question though. Why is it bad or illegal to not have a business licince or DBA or sellers permit etc, stupid question i know
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