Divide and conquer? Separate entities can cure some problems, cause others
Abstract: Sometimes a company evolves to the point where different segments don’t work well together or multiple owners find themselves unable to agree on a strategic direction. Dividing the business into separate entities may provide a way to conquer such dilemmas. But doing so may create some problems as well. This article explains how to design splits as tax-free transactions and shows how splitting the business may also affect personal finances.