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Question: I'm in process of setting up a C corporation and a business, I would like to know how to set the business up as a division of the corporation?

Response: A "division" of a corporation is really just a creature of accounting. It is not a separate legal entity. Thus, there are no filings done to create a "division". The only exception would be if you are going to use a separate trade name (also known as a "fictitious name") for this division: i.e., All-True Paving, a division of Jones Construction, Inc. or Jones Construction d/b/a All-True Paving. If the corporation was going to use a trade name, generally the corporation is required to file a trade name designation with the secretary of state's office. Here is the Missouri form used to register a fictitious name with the secretary of state.

Speak with your accountant regarding the mechanics of keeping a separate set of books for a division.



Submitted: 8-28-2006; Denise, Missouri
Response: 8-29-2006; JJR


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