Structuring Expanding Business

[Mark Kitchens]

My wife and I have been SFR investors for sometime. Having read Kyosaki from an early age, and playing Cashflow, we decided to buy our first business last year. We bought a small, poorly run (owner went through divorce) bakery so that we could focus on growing it rather than working it- we have employees for everything except marketing, which we will eventually turn over. The business at one point had 4 locations, but the previous owner, once the divorce started, shutdown the other locations.

Things have been fantastic (with all the nice ups and downs of retail) and we are expanding to a second location. We have the location, hiring the staff, building out, etc. but with our corporate structure I'd like some advice. Should we look at setting the new bakery up as a separate entity altogether DBA the same brand name? Or should we merely roll all the assets under our current LLC structure (note: our state doesn't care about DBA- you can have 30 companies with the same DBA so long as there are no complaints/TM infringements).

Many thanks in advance- and to answer a few questions; no I won't share the name and would appreciate it if others wouldn't as well.  We are happily cashflowing very well.  Yes, we still continue to invest in SFRs.  Yes, I'd love to jump into MFRs and Commercial- both in the works as well.  I work a 9-5 as a consultant and make more than enough, wife is stay-at-home/run-assets.  We hire Property Management.  I am happy to discuss in private messaging and love hearing others experiences and opinions, I have learned so much from everyone here and the blog/books at BiggerPockets, so please share with me your thoughts.

Thanks,

MAK