I have a company (S-corp) that performs service X. Currently, I am the sole performer in this company. This company is my day job and provides for my family. I have a proposed business deal wherein I would add employees to perform the same services on other projects. If I accept this offer, I will be taking on a partner. If I do that, I need to separate the income from my current "day job" work so that the only income split with the partner is the new income from added employee service providers. I think pretty clearly that I need to create a new company for my personal work (since that's easy to switch over), leaving the old company only receiving income from this new business deal and allowing the earnings to be properly split with the partner. The part that isn't clear is the ideal structure. The goal is tax filing simplicity and liability protection. Specifically, if new partner business gets sued, I don't want the personal company at risk, and vice versa. Create a holding company (S-corp) that owns LLC A (which handles personal work) and owns LLC B (which handles partner business)? The rub there is, based on my basic understanding, all companies need to operate as independent companies in order to preserve the liability protection. People speak of management/consulting fees paid to the holding company, but in this case, I would need the LLC A to push ALL earnings to the holding company. A fee of 100% of the subsidiary's profit doesn't seem "reasonable" and would surely be considered unreasonable in a court of law. Anyone want to share some insight on how to set this up where neither subsidiary is at risk due to a suit against the other and still allows for a single tax return?