Using one business entity to contain the activities of two separate businesses can save an entrepreneur some money initially, but Nancy Fallon-Houle counsels against it. She favors forming a business entity to house each discrete business. The primary reason for this is to protect one business from risks which befall the other, but as she details, there are many, many sound reasons to create business entities for each business which you want to create.
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Two Businesses = Two Business Entities