Multiple business ownership is quite common. A person who owns an automobile dealership might also own a finance company. Someone who owns a construction company might also own a real estate brokerage firm. Many physicians own medical equipment leasing companies. Stockbrokers own restaurants. The manner in which the ownership of multiple businesses is structured can have enormous income tax consequences. Unfortunately, many businesspeople do not consider these consequences until it is too late.
The failure to structure business ownership properly is one of the most common mistakes businesspeople make. In one case a person owned two corporations: one of these corporations had huge profits on which taxes were paid every year; the