We started an "I.T. Solutions" company which offers services in many different areas (software development, web design, e-commerce, consulting, etc.). The profits from these services are used to fund the development of our enterprise software. My questions are:
When the enterprise software is launched should we create a new company for it, having our current business as a parent company? What are the advantages and disadvantages for doing this? Do a lot of companies do this?
How does these relationships between parent and child companies work exactly?
Or should we just keep it simple and stick with the setup we have now. (Marketing the product on it's own of course).
Hope that makes sense.