Several companies under one

Why do this and what are the benefits??

If you have several small websites that produce income, should you group them under one corporation?

Corporate entities are largely about two things: taxes and liability.

Liability is pretty simple to arrange if you do it right. Companies that have special liabilities need to be more shielded, and each situation is different. You can limit liability through insurance, corporate entities, etc. Many small business have so little liability that this isn’t hard to deal with.

It’s the taxation that gets tricky.

If you have two websites, each with their own P&L, cashflow, etc. it may produce a better outcome if you run them as separate entities. You would incur some overhead but perhaps get a bigger tax break in the end, and thus more money for shareholders.

Or the reverse is sometimes true. If you had 10 small websites and each made a bit of money while they all used the same marketing/advertising/affiliate accounting it may make sense to hold them all in one company, since the overhead of breaking them up would eat all the profits.

You can create two companies that do business with each other, and all sorts of permutations. This is a good CPA question, in most cases.