Start new S-Corp for 2nd practice location?

[drdds]

Hello friends,

I have a practice location that I own and operate under my S Corp. I am planning to acquire a second practice location. Should I start a new S Corp to own and operate it? Does having two corps make things easier in terms of managing the books and keeping the numbers clean and separate? Or should I manage both under the one Corp? I will check with a CPA too but would appreciate the thoughts and experiences of the super sharp forum members here. Thanks.

[jfoxcpacfp]

Partly depends upon your future plans. You might want to sell the practices to 2 different associates in the future and/or it might be easier. In that case, it would be much simpler to have 2 unique entities. It also helps you track the P&L of each business and compare, although you can also separate in the bookkeeping software.

It will definitely cost more to keep the entities separate but it might be worth the extra cost. Your CPA should be very helpful in thinking this decision through.