I have been baking for a couple years now (well, really all my life but recently for others) and am thinking about going all in and creating a legal cake biz. My husband and I already own a Video/Photography biz. Would I need a completely new entity or could the cake biz be an "affiliate" of sorts to our already established one?
Also, I am so torn on the name. Originally, I was going to go with TwinsyPops Bakery, as my twin sis and I were going to do it together. Well, she got another job and it's just me, so I was thinking of changing the name to Mama Lala's Bakery (my Great Grandmother's nickname was Mama Lala). Any opinions on either of these or maybe new ideas?
Thanks for you responses!
Hooray! A question I can answer! (Kind of a newbie to the baking scene...but attorney by training).
Generally, there is no need to create a separate corporate entity if you want to do two types of business under one corporate umbrella. A corporate entity can exist for any legal purpose that is consistent with the desires of its shareholders (or members or partners, depending on the type of entity). So, assuming that you and your husband are the only shareholders (or members or partners), you can operate a baking business under your established business.
There are reasons to form a separate corporate entity -- for example, some states might have rules about having more than one d/b/a or name associated with a particular entity, there might be tax advantages to having one business that is profitable while one business is not (I am NOT a tax attorney), or it might be easier to get insurance for both businesses if they are separate, etc.
Likely, a decent corporate attorney in your area can help you ensure that your existing entity is the proper vehicle for your new business or help you a separate entity for a few hundred dollars if you want to make sure everything is done properly.
Hope that helps and best of luck!
AThank you so much for your response! It was very helpful and my husband and I will be consulting our accountant and a corporate attorney. I'm so excited to start!
AIf I were you I would just create a separate partnership for the bakery with its own d/b/a name. If you already have an LLC you can have the LLC own the new partnership so you can take advantage of the liability protection.