Although both the old company and the new company perform similar services, I don t want to worry about being sued for something during the previous timeframe and loosing assets from the new business. I provide legal documents to the public as an independent paralegal. The old company is no longer profitable so I am concentrating on another area I expect will be profitable. I don t want to risk the income from the new business being vulnerable to suit from the older business.
Then you DEFINITELY need to do a separate filing. And perhaps, even close up and dissolve the old corp while you re at it.
If you want to make sure the new company s assets are not liable, you should set up a new corporation.
Set up a separate S Corporation...keeping in mind that you will have additional tax filings for each...You also will combine as a controlled group so check with your attorney.
