Right now I operate multiple eCommerce websites under one S-Corp. My thought is to separate each of those websites into their own S-Corp or LLC under one Holding Company.
My problem is I would use the same shipping warehouse to store inventory and ship out orders for all my websites.
One thought is that I have the holding company own all the inventory and essentially the websites only own the brand/domain and are paid a commission on sales, however I didn’t know if this approach would protect the holding company from any liability from customers where it would own the inventory.
What would be better – Holding company owns inventory and pays commissions to website operating companies, or the website operating companies own the inventory and pay the holding company or a separate “Fulfillment Center†Operating Company a warehousing/fulfillment fee?
I want to take the easiest approach. I also sell on an online auction site that is known for closing accounts for random reasons so I figured I could dissolve a LLC or S-Corp if this where to happen and start a new one under the same holding company easily enough.
Would you do an LLC or S-Corp for the holding company and operating company?
My problem is I would use the same shipping warehouse to store inventory and ship out orders for all my websites.
One thought is that I have the holding company own all the inventory and essentially the websites only own the brand/domain and are paid a commission on sales, however I didn’t know if this approach would protect the holding company from any liability from customers where it would own the inventory.
What would be better – Holding company owns inventory and pays commissions to website operating companies, or the website operating companies own the inventory and pay the holding company or a separate “Fulfillment Center†Operating Company a warehousing/fulfillment fee?
I want to take the easiest approach. I also sell on an online auction site that is known for closing accounts for random reasons so I figured I could dissolve a LLC or S-Corp if this where to happen and start a new one under the same holding company easily enough.
Would you do an LLC or S-Corp for the holding company and operating company?
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