Looking some help.
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This topic contains 1 reply, has 2 voices, and was last updated by Avatar of Anthony Anthony 4 years, 5 months ago.

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  • #6363
    Avatar of Brocel
    brocel
    Member

     I’m already running a business of swing and have round about 100 workers. But know that i like to start another business which i quite different from previous one. Actually I’m going to launch hotel of 30 beds with all the possible facilities.My question is that can i withdrawal some capital from swing business to facilitate new business?It is goo ides or not…?

    #6368
    Avatar of Anthony
    Anthony
    Moderator

    If you are the only director and shareholder of the exiting company, then you can invest its funds however you like. Probably the smartest thing to do would be to register a new corporation for the hotel business and lend money to it from the old business.Since you are responsible for the welfare of 100 employees, you want to make sure that starting the new business will not have a negative impact on the original one, which is a proven money-maker. Try not to do anything too risky.Unless you run the swing business as a sole-proprietor (unlikely and probably unwise since you have so many workers), you cannot simply withdraw money from its accounts to do with as you please.If the hotel was a sub-business under the existing company, then you could use the swing company’s money to directly finance the hotel operations, but doing it this way is probably not the way to go. If it is a separate corporation, then something bad happening to one company would not seriously impact the other.

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