S-CORP: how liberal can I be with new business ideas?

From: <cartesiankyle_at_gmail.com>
Date: 11 Aug 2006 05:34:22 -0700

My S-CORP, army of 1, whose primary source of revenue is consulting services, wants to start a few new business ideas totally unrelated to consulting services. can I write some checks (expenses) from my S-CORP bank account for new business ideas (ie. paying $2K for someone to write a computer program for me that will be the cornerstone of my new business venture) or do I have to create like an LLC, then have my S-CORP own the LLC, and do it that way? How do I legally "link" the two together in that case then? On the S-CORP side, $2K would be recorded as an expense, on the LLC side, is it considered revenue, initial balance, or what?

Thanks in advance,

Kyle Received on Fri Aug 11 2006 - 05:34:28 PDT