U.
S. SECURITIES AND EXCHANGE COMMISSION


Washington,
D. C. 20549





FORM
10-Q






(Mark
One)




x Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934




for the quarterly period ended November 30,
2008




o Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934




for the transition period from ________ to
________







Commission
File Number: _____________














HIGHLAND
BUSINESS SERVICES, INC.





(Exact
name of small business issuer as specified in its charter)





Nevada
            26-1607874(State
      or other jurisdiction of incorporation or organization)
            (IRS
      Employer Identification No.)





15202
N 8th Drive


Phoenix, AZ
85023





(Address
of Principal Executive Offices) (Zip Code)





(602)
375-0888





(Issuer's
telephone number)








Check
whether the issuer  (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90
days. Yes xNo o






Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See the definitions of “large accelerated filer,”
“accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in
Rule 12b-2 of the Exchange Act.




Large
      accelerated filer
            o
            Accelerated
      filer
            oNon-accelerated
      filer
            o
            Smaller
      reporting company
            x






Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes oNo x







The
number of outstanding shares of the issuer's common stock, $0.001 par value, as
of November 30, 2008 was 6,946,100.






1




HIGHLAND
BUSINESS SERVICES, INC.




TABLE
OF CONTENTS




Part
      I
            Financial
      Information
            
            3Item
      1.
            Financial
      Statements:
            
            3Condensed
      Balance Sheets for the period ended November 30, 2008 ( unaudited) and for
      the year ended May 31, 2008
            
            3Unaudited Condensed
      Statements of Operations for the three and six months ended November
      30,
      2008 and 2007, and cumulative during development stage from February 24,
      2006 (inception) through November 30,
      2008
            
            4Unaudited Condensed
      Statements of Cash Flows for the six months ended November 30,
      2008 and 2007, and cumulative during development stage from February 24,
      2006 (inception) through November 30,
    2008
            
            5Unaudited
      Statements of Stockholders' Equity for the period from February 24, 2006
      (inception) through November 30, 2008
            
            6Notes
      to Financial Statements (unaudited)
            
            7Item
      2.
            Management's
      Discussion and Analysis of Financial Condition and Results of
      Operations
            
            8Item
      3.
            Quantitative
      and Qualitative Disclosures About Market
    Risk
            
            10Item
      4T.
            Controls
      and Procedures
            
            10Part
      II
            Other
      Information
            
            11Item
      1.
            Legal
      Proceedings
            
            11Item
      1A.
            Risk
      Factors
            
            11Item
      2.
            Changes
      in Securities
            
            11Item
      3.
            Defaults Upon
      Senior Securities
            
            11Item
      4.
            Submission
      of Matters to Vote of Security Holders
            
            11Item
      5.
            Other
      Information
            
            11Item
      6.
            Exhibits
            
            11Signatures
            
            11











2




PART I.
- FINANCIAL INFORMATION




ITEM 1.
FINANCIAL STATEMENTS




HIGHLAND
      BUSINESS SERVICES, INC.(A
      DEVELOPMENT STAGE ENTERPRISE)CONDENSED
      BALANCE SHEETSNovember
      30,
                                                  
                                                  
                                                  May
      31,2008
                                                  
                                                  
                                                  2008(unaudited)ASSETSCURRENT
      ASSETSCash
                                                  
                                                  $
                                                  168
                                                  
                                                  
                                                  $
                                                  9,470Prepaid
      Expenses - Fees
                                                  
                                                  
                                                  1,103
                                                  
                                                  
                                                  
                                                  -TOTAL
      CURRENT ASSETS
                                                  
                                                  $
                                                  1,270
                                                  
                                                  
                                                  $
                                                  9,470LIABILITIES AND STOCKHOLDERS'
      EQUITYTOTAL
      CURRENT LIABILITIES
                                                  
                                                  $
                                                  -
                                                  
                                                  
                                                  $
                                                  -COMMITMENTS
      AND CONTINGENCIESSTOCKHOLDERS'
      EQUITYCommon
      stock, par value $.001, 75,000,000shares
      authorized, 6,946,100 issued and outstanding
                                                  
                                                  
                                                  6,946
                                                  
                                                  
                                                  
                                                  6,946Paid
      in Capital
                                                  
                                                  
                                                  27,603
                                                  
                                                  
                                                  
                                                  20,513(Deficit)
      accumulated during the development stage
                                                  
                                                  
                                                  (33,279
                                                  )
                                                  
                                                  
                                                  (17,989
                                                  )Total
      Stockholders' Equity
                                                  
                                                  
                                                  1,270
                                                  
                                                  
                                                  
                                                  9,470$
                                                  1,270
                                                  
                                                  
                                                  $
                                                  9,470SEE
      ACCOMPANYING NOTES TO FINANCIAL
STATEMENTS


3





HIGHLAND
      BUSINESS SERVICES, INC.(A
      DEVELOPMENT STAGE ENTERPRISE)CONDENSED
      STATEMENTS OF OPERATIONS(UNAUDITED)CumulativefromFebruary
      24, 2006(Inception)For
      the three months ended
                                                                                                      
                                                                                                      
                                                                                                      For
      the six months ended
                                                                                                      
                                                                                                      
                                                                                                      toNovember
      30,
                                                                                                      
                                                                                                      
                                                                                                      November
      30,
                                                                                                      
                                                                                                      
                                                                                                      November
      30,2008
                                                                                                      
                                                                                                      
                                                                                                      2007
                                                                                                      
                                                                                                      
                                                                                                      2008
                                                                                                      
                                                                                                      
                                                                                                      2007
                                                                                                      
                                                                                                      
                                                                                                      2008REVENUES
                                                                                                      
                                                                                                      $
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      -EXPENSESGeneral
      and administrative
                                                                                                      
                                                                                                      
                                                                                                      (3,698
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (1,710
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (15,296
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (3,170
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (33,294
                                                                                                      )Total
      expenses
                                                                                                      
                                                                                                      
                                                                                                      (3,698
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (1,710
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (15,296
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (3,170
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      (33,294
                                                                                                      )Interest
      Income
                                                                                                      
                                                                                                      
                                                                                                      (0
                                                                                                      )
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      6
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      15NET
      (LOSS)
                                                                                                      
                                                                                                      $
                                                                                                      (3,698
                                                                                                      )
                                                                                                      
                                                                                                      $
                                                                                                      (1,710
                                                                                                      )
                                                                                                      
                                                                                                      $
                                                                                                      (15,290
                                                                                                      )
                                                                                                      
                                                                                                      $
                                                                                                      (3,170
                                                                                                      )
                                                                                                      
                                                                                                      $
                                                                                                      (33,279
                                                                                                      )NET
      (LOSS) PER SHARE - BASIC
                                                                                                      
                                                                                                      
                                                                                                      *
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      *
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      *
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      *WEIGHTED
      AVERAGE NUMBER OFCOMMON
      SHARES OUTSTANDING
                                                                                                      
                                                                                                      
                                                                                                      6,946,100
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      6,000,000
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      6,946,100
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      6,000,000*  less
      than $(.01) per shareSEE
      ACCOMPANYING NOTES TO FINANCIAL
STATEMENTS


4




HIGHLAND
      BUSINESS SERVICES, INC.(A
      DEVELOPMENT STAGE ENTERPRISE)CONDENSED
      STATEMENTS OF CASH FLOWS(UNAUDITED)CumulativefromFebruary
      24, 2006For
      the six months ended
                                                                                                                    
                                                                                                                    
                                                                                                                    (Inception)November
      30,
                                                                                                                    
                                                                                                                    
                                                                                                                    to2008
                                                                                                                    
                                                                                                                    
                                                                                                                    2007
                                                                                                                    
                                                                                                                    
                                                                                                                    November
      30, 2008OPERATING
      ACTIVITIESNet
      (loss)
                                                                                                                    
                                                                                                                    $
                                                                                                                    (15,290
                                                                                                                    )
                                                                                                                    
                                                                                                                    $
                                                                                                                    (3,170
                                                                                                                    )
                                                                                                                    
                                                                                                                    $
                                                                                                                    (33,279
                                                                                                                    )Stock
      issued for services
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    950
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    6,000Contributed
      capital
                                                                                                                    
                                                                                                                    
                                                                                                                    7,090
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    2,220
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    19,088Prepaid
      expenses
                                                                                                                    
                                                                                                                    
                                                                                                                    (1,103
                                                                                                                    )
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    (1,103
                                                                                                                    )NET
      CASH PROVIDED BY OPERATING ACTIVITIES
                                                                                                                    
                                                                                                                    
                                                                                                                    (9,302
                                                                                                                    )
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    (9,293
                                                                                                                    )FINANCING
      ACTIVITIESProceeds
      from sale of common stock
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    9,461NET
      CASH PROVIDED BY FINANCING ACTIVITIES
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    9,461NET
      INCREASE IN CASH
                                                                                                                    
                                                                                                                    
                                                                                                                    (9,302
                                                                                                                    )
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    168CASH,
      BEGINNING OF PERIOD
                                                                                                                    
                                                                                                                    
                                                                                                                    9,470
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    -CASH,
      END OF PERIOD
                                                                                                                    
                                                                                                                    $
                                                                                                                    168
                                                                                                                    
                                                                                                                    
                                                                                                                    $
                                                                                                                    -
                                                                                                                    
                                                                                                                    
                                                                                                                    $
                                                                                                                    168SEE
      ACCOMPANYING NOTES TO FINANCIAL
STATEMENTS


5




HIGHLAND
      BUSINESS SERVICES, INC.(A
      DEVELOPMENT STAGE ENTERPRISE)STATEMENT
      OF STOCKHOLDERS' EQUITY(Deficit)AccumulatedShareholders'
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        During
      theCommon
      Stock
                                                                        
                                                                        
                                                                        Services
      -
                                                                        
                                                                        
                                                                        Paid-in
                                                                        
                                                                        
                                                                        DevelopmentShares
                                                                        
                                                                        
                                                                        Amount
                                                                        
                                                                        
                                                                        Deferred
                                                                        
                                                                        
                                                                        Capital
                                                                        
                                                                        
                                                                        Stage
                                                                        
                                                                        
                                                                        TotalBalances,
      at inception
                                                                        
                                                                        
                                                                        -
                                                                        
                                                                        
                                                                        $
                                                                        -
                                                                        
                                                                        
                                                                        $
                                                                        -
                                                                        
                                                                        
                                                                        $
                                                                        -
                                                                        
                                                                        
                                                                        $
                                                                        -
                                                                        
                                                                        
                                                                        $
                                                                        -Issuance
      of common stock, February 24, 2006at
      $.001 per share for future services
                                                                        
                                                                        
                                                                        6,000,000
                                                                        
                                                                        
                                                                        
                                                                        6,000
                                                                        
                                                                        
                                                                        
                                                                        (6,000
                                                                        )
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        -Value
      of services subsequently renderedfor
      previously issued shares of common stock
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        960
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        960Services
      contributed to capital
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        549
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        549Net
      (loss) for the period
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        (1,509
                                                                        )
                                                                        
                                                                        
                                                                        (1,509
                                                                        )Balances,
      May 31, 2006
                                                                        
                                                                        
                                                                        6,000,000
                                                                        
                                                                        
                                                                        
                                                                        6,000
                                                                        
                                                                        
                                                                        
                                                                        (5,040
                                                                        )
                                                                        
                                                                        
                                                                        549
                                                                        
                                                                        
                                                                        
                                                                        (1,509
                                                                        )
                                                                        
                                                                        
                                                                        -Value
      of services subsequently renderedfor
      previously issued shares of common stock
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        2,557
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        2,557Services
      contributed to capital
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        2,277
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        2,277Net
      (loss) for the year
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        (4,834
                                                                        )
                                                                        
                                                                        
                                                                        (4,834
                                                                        )Balances,
      May 31, 2007
                                                                        
                                                                        
                                                                        6,000,000
                                                                        
                                                                        
                                                                        
                                                                        6,000
                                                                        
                                                                        
                                                                        
                                                                        (2,483
                                                                        )
                                                                        
                                                                        
                                                                        2,826
                                                                        
                                                                        
                                                                        
                                                                        (6,343
                                                                        )
                                                                        
                                                                        
                                                                        -Shares
      issued for cash in a private placement at $0.01 per
                                                                        
                                                                        
                                                                        946,100
                                                                        
                                                                        
                                                                        
                                                                        946
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        8,515
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        9,461share
      on May 28, 2008Value
      of services subsequently renderedfor
      previously issued shares of common stock
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        2,483
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        2,483Services
      contributed to capital
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        9,172
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        9,172Net
      (loss) for the year
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        (11,646
                                                                        )
                                                                        
                                                                        
                                                                        (11,646
                                                                        )Balances,
      May 31, 2008
                                                                        
                                                                        
                                                                        6,946,100
                                                                        
                                                                        
                                                                        
                                                                        6,946
                                                                        
                                                                        
                                                                        
                                                                        -
                                                                        
                                                                        
                                                                        
                                                                        20,513
                                                                        
                                                                        
                                                                        
                                                                        (17,989
                                                                        )
                                                                        
                                                                        
                                                                        9,470(unadited)Services
      contributed to capital
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        7,090
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        7,090Net
      (loss) for the period
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        (15,290
                                                                        )
                                                                        
                                                                        
                                                                        (15,290
                                                                        )Balances,
      November 30, 2008, (unaudited)
                                                                        
                                                                        
                                                                        6,946,100
                                                                        
                                                                        
                                                                        $
                                                                        6,946
                                                                        
                                                                        
                                                                        $
                                                                        -
                                                                        
                                                                        
                                                                        $
                                                                        27,603
                                                                        
                                                                        
                                                                        $
                                                                        (33,279
                                                                        )
                                                                        
                                                                        $
                                                                        1,270SEE
      ACCOMPANYING NOTES TO FINANCIAL
STATEMENTS


6
 
 HIGHLAND
BUSINESS SERVICES, INC.
 (A
Development Stage Enterprise)
 NOTES
TO FINANCIAL STATEMENTS
 For
the six months ended November 30, 2008 and 2007
 (Unaudited)




NOTE 1
- BASIS OF PRESENTATION
 
 In the
opinion of management, the accompanying unaudited condensed financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form
10-Q.  Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation of
the Company’s financial position as of November 30, 2008 and the results of its
operations and cash flows for the three and six months ended November 30, 2008
have been made.  Operating results for the six months ended November
30, 2008 are not necessarily indicative of the results that may be expected for
the year ended May 31, 2009.
 
 These
condensed financial statements should be read in conjunction with the financial
statements and notes for the years ended May 31, 2008 and 2007, thereto
contained in the Company’s Form S-1 filed on September 30, 2008.
 
 
 NOTE
2 - GOING CONCERN
 
 Our
financial statements have been presented on the basis that it is a going
concern, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business.  Our ability to continue
in existence is dependent on its ability to develop additional sources of
capital and achieve profitable operations. Management’s plan is to pursue our
business plan. The accompanying financial statements do not include any
adjustments that might result from the outcome of these
uncertainties.
 
 
 NOTE
3 - SERVICES CONTRIBUTED TO CAPITAL
 
 Services
contributed by management to capital during the periods ended November 30, 2008
and 2007, totaled $7,090 and $2,220, respectively, and were based on the fair
value of such services. For 2008, those services consisted of management
compensation of $2,950 and office overhead of $4,140. For 2007 those services
consisted of management compensation of $900 and office overhead of
$1,320.
 
 Our
office is in the home of our President/CEO and includes the fair value of space
and communications incurred on a month to month basis of
$150.





7




ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 
 You
should read this section in conjunction with our financial statements and the
related notes included in this Form 10-Q.  Some of the information
contained in this section or set forth elsewhere in this Form 10-Q, including
information with respect to our plans and strategies for our business,
statements regarding the industry outlook, our expectations regarding the future
performance of our business, and the other non-historical statements contained
herein are forward-looking statements.
 
 OVERVIEW
 
 Highland
was incorporated on February 24, 2006 in the State of Nevada.  We have
not yet begun our business operations and we currently have no revenue and no
significant assets.  Highland has never declared bankruptcy, has never
been in receivership, and has never been involved in any legal action or
proceedings.
 
 Since
becoming incorporated, Highland has not made any significant purchase or sale of
assets, nor has it been involved in any mergers, acquisitions or
consolidations.  Highland is not a blank check registrant as that term
is defined in Rule 419(a)(2) of Regulation C of the Securities Act of 1933,
since it has a specific business plan or purpose.
 
 CURRENT
BUSINESS OPERATIONS
 
 As of the
date of this quarterly report, we have not started operations.  Our
services are currently in the development stage and are not ready for commercial
sale.  We anticipate they will be available in January
2009.
 
 We are
planning to focus our operations on the development of a diverse network of
individuals and firms that can offer their professional services to public
companies.  Our target market is primarily small companies that plan
to go public, are about to go public, or are experiencing a transitional phase
where they are in need of certain management personnel.  These
companies often need assistance either short term or long term to ensure SEC
compliance.  Using our service provider database, Highland will refer
qualified professionals to these companies for employment as independent
contractors.  Highland will charge a referral fee to the service
provider of a negotiated percentage for a negotiated period of time based on the
specific partnership.
 
 Our
management team is comprised of individuals who have significant experience in
dealing with public companies and public company service
providers.  In our dealings with these relationships, we identified a
trend towards the growing need of assistance from professionals who offer
various areas of expertise for public companies.  We continuously
received requests to place public companies in contact with SEC attorneys,
accountants, auditors, market markers and more.  When we put these
companies in contact with the requested service provider, they were thankful and
never made statements of dissatisfaction in regards to their integrity,
professionalism, or quality of work.  Conversely, the SEC attorneys,
accountants and auditors who received the referral were equally thankful for the
business.  We saw this as an opportunity to fill a niche in the
marketplace that is currently deficient.
 
 The
competitive research we’ve conducted in this area has uncovered only a handful
of businesses that offer similar services.  All but one offer referral
services in only one area (Ex: CPA’s).  Our plan is to offer referral
services in all needed areas for public companies.  Companies in the
process of going public who are in need of multiple services can utilize us for
all of their needs.  In the same respect, established smaller public
companies in need of an interim controller or financial officer can also find a
qualified professional through us.
 
 PLAN OF
OPERATION
 
 We have
devised a three step plan to develop and implement our business.  This
plan may be revised in the future as management finds necessary.  Any
modifications to our business plan will be clearly expressed to the
shareholders.
 
 STEP
I
 
 Step I
will primarily consist of contacting all of the attorneys, accountants,
auditors, and other service providers we have already built a relationship with
and determine if they are interested in becoming part of our database of service
providers.  We plan to have agreements with 20 service providers by
January 2009.
 
 
 
  8
  
 ITEM 2. MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS- continued
  STEP
II
 
 During
our second phase, we will work with legal counsel to construct the contracts and
other legal documents for the relationships we will form between us, the service
providers, and the public companies.  We will also continue to enhance
our website and implement search engine placement tactics.  We will
focus on our sales and marketing efforts by contacting local service providers
and public companies to offer them our referral service.  Our goal is
to have 100-300 service providers in our database and have established 15
successful relationships by September 2009.
 
 STEP
III
 
 Step III
will involve extensive web development including the design and release of a
tool that will allow prospective clients to apply for their needed service in
minutes online.  Our online application tool will allow both public
companies and service providers to express the full range of their needs quickly
and easily.  Using this, we will be able to download their request,
and have a service provider or public company in mind (if available) when we
contact them, reducing the turn-time significantly.  We will increase
our sales and marketing efforts by targeting both nationwide and internationally
based prospective clientele.  To execute this, we plan to employ a
full or part-time sales professional.  Our goal is to have 1,000
service providers in our database and 100 relationships formed by January
2011.
 
 RESULTS
OF OPERATIONS
 
 FOR THE
THREE MONTHS ENDED NOVEMBER 30, 2008 COMPARED TO THE THREE
MONTHS ENDED NOVEMBER 30, 2007
 
 During
the three months ended November 30, 2008 and 2007, we did not
have revenues and our expenses consisted primarily of rent and minimal salary
compensation.
 
 LIQUIDITY
AND CAPITAL RESOURCES
  We have
cash assets at November 30, 2008 of$168.We will
be reliant upon shareholder loans or private placements of equity to fund any
kind of operations.  We have secured no sources of loans.  We did
not have any cash flows during the three months ended November 30,
2008.
 
 On a
short-term basis, we have not generated any revenues to cover
operations.  Based on prior history, we will continue to have
insufficient revenue to satisfy current and recurring liabilities as we continue
development activities. For short term needs we will be dependent on receipt, if
any, of private placement proceeds. Our
assets consist of a savings account with a balance of
$168. Our total
liabilities are $-0- at November 30, 2008.
 
 We have
only common stock as our capital resource.
  MATERIAL
COMMITMENTS
  We have
no material commitments for capital expenditures within the next year, however
if operations are commenced, substantial capital will be needed to pay for
development of our website, marketing, sales and normal start up
costs.
 
 NEED FOR
ADDITIONAL FINANCING
  We do not
have capital sufficient to meet our expected cash requirements, therefore, we
will have to seek loans or equity placements.
 
 No
commitments to provide additional funds have been made by our management or
other stockholders.  Accordingly, there can be no assurance that any
additional funds will be available to us to allow it to cover our expenses as
they may be incurred.
 
 We will
need additional capital to support our proposed future
development.  We have NO revenues.  We have NO committed
source for any funds as of date here.  No representation is made that
any funds will be available when needed.  In the event funds cannot be
raised when needed, we may not be able to carry out our business plan, may never
achieve sales or income, and could fail in business as a result of these
uncertainties.
 
   9
  ITEM 2. MANAGEMENT’S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS- continued
  We have
budgeted $20,000 for the period ending January 1, 2010. The funds allocated to
administrative expenses are intended to be used for indirect expenses to
maintain the daily operation of the business, such as travel expenses,
stationary and postage expenses, printing expenses and web site
development.
 
 Management
plans to temporarily advance capital to maintain normal operations. Management
has agreed to provide temporary financing to the Company, but is not
contractually obligated to do so. If we fail to raise additional funding, we may
have to delay, scale back or discontinue some or all of our
objectives.
 
 LIMITED
FINANCING.
 
 We
may  borrow  money
to  finance  our  future  operations,  although  we
do not currently  contemplate  doing so. Any such borrowing
will increase the risk of loss to the investor in the event we are unsuccessful
in repaying such loans.
  OFF-BALANCE SHEET
ARRANGEMENTS
  As of
the date of this Quarterly Report, we do not have any off-balance sheet
arrangements that have or are reasonable likely to have a current or future
effect on our financial condition, changes in financial condition, revenues or
expenses, results of operations, liquidity, capital expenditures or capital
resources that are material to investors.
    ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
 Not
applicable.
 ITEM
4T. CONTROLS AND PROCEDURES
  Evaluation
of Disclosure Controls and Procedures
 As
required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end
of the period covered by this quarterly report, being November 30, 2008, we have
carried out an evaluation of the effectiveness of the design and operation of
our company’s disclosure controls and procedures. This evaluation was carried
out under the supervision and with the participation of our management,
including our Chief Executive Officer. Based upon that evaluation, our Chief
Executive Officer concluded that our disclosure controls and procedures are
effective as at the end of the period covered by this report. There have been no
significant changes in our internal controls over financial reporting that
occurred during our most recent fiscal quarter ended November 30, 2008 that have
materially affected, or are reasonably likely to materially affect our internal
controls over financial reporting.
  Disclosure
controls and procedures and other procedures that are designed to ensure that
information required to be disclosed in our reports filed or submitted under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported,
within the time period specified in the Securities and Exchange Commission’s
rules and forms. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be
disclosed in our reports filed under the Securities Exchange Act of 1934 is
accumulated and communicated to management, including our Chief Executive
Officer to allow timely decisions regarding required disclosure.
  Our
management, including our Chief Executive Officer and Chief Accounting Officer,
does not expect that our disclosure controls and procedures or our internal
controls will prevent all errors and all fraud. A control system, no matter how
well conceived and operated, can provide only reasonable, not absolute,
assurance that the objectives of the control system are met. Further, the design
of a control system must reflect the fact that there are resource constraints,
and the benefits of controls must be considered relative to their costs. Because
of the inherent limitations in all control systems, no evaluation of the
controls can provide absolute assurance that all control issues and instances of
fraud, if any, within our company have been detected.
  10
  PART
II - OTHER INFORMATION




ITEM
1. LEGAL PROCEEDINGS
  None
   ITEM
1A. RISK FACTORS
  Not
required
   ITEM
2. CHANGES IN SECURITIES
  None
   ITEM
3. DEFAULTS UPON SENIOR SECURITIES
  None
   ITEM
4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
  None
   ITEM
5. OTHER INFORMATION
  None
   ITEM
6. EXHIBITS
  EXHIBIT
      NO.
              DESCRIPTION31.1
              Certification of Chief Executive Officer Pursuant
      to Section 302 of the Sarbanes-Oxley Act of
  200231.2
              Certification of Chief Financial Officer
      Pursuant to Section 302 of the Sarbanes-Oxley Act of
      200232.1
              Certification Pursuant to 18 U.S.C. Section 1350,
      as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002
   SIGNATURES
  In
accordance with Section 12 of the Securities Exchange Act of 1934, the
registrant caused this registration statement to be signed on its behalf by the
undersigned, thereto duly authorized.
   Highland
      Business Services, Inc.

                  (Registrant)/s/
      Marie C Moffett
                
                
                /s/
      Rodger D
SpainhowerName:
      Marie C Moffett
                
                
                Name: Rodger
      D SpainhowerTitle: President
      and Chief Operating Officer
                
                
                Title:
      Chief
      Executive Officer and Chief Financial OfficerDated: January
      14, 2009
                
                
                Dated: January
      14, 2009
   11