What formation should I use for my business
jaddison: I'm no expert, but I'll chime in with my thoughts.  I'd look into doing something like the following, which is largely what you've already thought of:- umbrella corp-- project corp #1-- project corp #2I'd be working on new ideas (incubating, so to speak) within "umbrella corp" itself, and then spin off a "project corp #" when you're ready to start looking for/making money.I think there are some disadvantages to this, depending on how your local state/provincial and federal grant systems work.  For example, here in Canada, we have SR&ED (Scientific Research and Experimental Development) which helps companies that do R&D by offsetting expenses.  I believe that any R&D you did in "umbrella corp" applies only to expenses made within that same company - NOT after you had spun the idea off into a "project corp #".Regardless of what country you live in, if you're looking to protect your other ideas/IP, you are certainly well advised to isolate the investment-worthy idea in its own corporation, and likely with ownership of the "project corp #" held by "umbrella corp"...... unless you're looking to give out dividends to yourself from "project corp #" in the future. If you yourself don't own shares, I don't think you could get dividends - only a salary.Ok, obviously I'm digressing.  Final advice - don't listen to me.  You'd do well to discuss these particular topics with both an accountant and lawyer.  ;)