Holding & Operating Company Setup for Multiple eCommerce Businesses

[trav]

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 â€" 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?

 

[army judge]

For the benefit of your business, I suggest you discuss the matter with your CPA or tax attorney.

 

[trav]

I will, just want to get some ideas before doing so

 

[army judge]

I will, just want to get some ideas before doing so

That is precisely why you pay a professional familiar with you and your business.
There's not very much an uninformed stranger can offer to you of value.

 

[trav]

Doesn't that defeat the purpose of the forum? lol

 

[army judge]

Doesn't that defeat the purpose of the forum? lol

Not at all, because we discuss simpler things.
We might offer information about what someone can expect at an arraignment, how to seek a public defender, why a person might want to inquire about diversionary sentencing programs, the differences between child custody and child support, etc...
It isn't wise to seek advice about complex legal matters from people you don't know.
Plus, even though I'm a lawyer licensed to practice in several states and before the federal courts, we don't offer legal advice.
We discuss points of law, definitions of legal terms, explanation about the court process, etc...