If you are keeping both businesses under the same LLC, then all you need
to do is "departmentalize" your chart of accounts. Each department will
generate its own income statement. If you use the right accounting
software, it will also generate a "consolidated" income statement,
showing the combination of both businesses. Because cash and other
assets will probably be mingled, that should handle it. If you don't
know how to departmentalize your chart of accounts, it is available in
the Preferred Edition of A-Systems Visual Bookkeeper at
for an affordable price.
Now, here are the questions. Do you think it's appropriate to have both
companies share the liability of the other company? If you recognize
the wisdom of having an LLC to limit your personal liability, why not
limit the liability of each company to its own operation? That means
having two LLCs. It I were doing it, that's what I'd do. Then, you can
use Visual Bookkeeper to run both companies, separately.
Just my thoughts,
> I have an internet web development and services business (develop web
> sites). This is an LLC business. I want to start a division of my
> business which books adventure travel tours. Do I need to seperate the
> accounting for the two "divisions"?
> Thanks in advance for all usesful replies!