Establishing a mainstream business with an adult arm

So after much discussion with my accountants and lawyers they have decided it is far easier for me to combine all my operations in to one business and then merely have specialist divisions for those that are adult and those that are not.

Have any of you experienced this before and have any suggestions?

Thanks,

Allan

even though its one business, make sure you have non-adult specific websites, email addresses, etc. It makes sense from an accountant's pov to combine them, but when you are dealing with mainstream companies they want nothing to do with adult.

cheers,
Luke

I personally don't think it's a good idea since mainstream compagnies don't like dealing with adult.

It is always a good idea to break the business apart.
Sure, it's extra work for the accountant and a bit of work for you but in the long run you are more "protected".

There are still a lot of "christian conservatives" that WILL not work with any companies that do not support their own view of life. If you only want to work with people that are open minded then it's not a issue.

Or..if you build up one division and and to sell it you would be able to only sale the one division or the other. You will have more chances to sell to more people.

Steven

Hmm,

Will go back and think about this some more before making the final decision, thanks guys!

Cheers,

Allan

There are definately pros and cons for using both methods, seperate entities and combined.

For us, the solution was to have seperate entities, the main contributing factor for us was that is something happened to either business, it left the other totally risk free and, we could still maintain and operate that corporation.

Of course, the tax bonuses of having two seperate companies was a great deal sweeter for us also, what with one company needing to purchase traffic and, our other needing to sell it.

So far as the paperwork side of things went, yes, its more hassle for taxes and accounting purposes but, by having two completely individual companies running independantly of each other, the pro's far outweighed the cons especially with the 'adult' industry going through the changes it is doing presently.

As mentioned above, another reason for us to have the two entities was because one, doesnt have to interfere with the operations of the other, we currently do work for several sites in mainstream and, im pretty sure if they knew of our adult ties we wouldnt have gotten the work, even though we were priced lower than their other bids ;)

Regards,

Lee