----

----

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

----

----

| Large      accelerated filer | o      | Accelerated      filer    | o      |
|------------------------------|--------|--------------------------------|--------|
|                         |   |                           |   |
| Non-accelerated      filer   | o      | Smaller      reporting company | x      |

----

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

----

| HIGHLAND      BUSINESS SERVICES, INC.                                                                    |
|----------------------------------------------------------------------------------------------------------|
| (A      DEVELOPMENT STAGE ENTERPRISE)                                                                    |
| CONDENSED      BALANCE SHEETS                                                                            |
|                                                                                                     |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |
|                                                                                                     |   | August      31, |   |   | May      31, |   |
|                                                                                                     |   | 2008 |   |   | 2008 |   |
|                                                                                                     |   | (unaudited) |   |   |   |   |
| ASSETS                                                                                                   |   |
|                                                                                                     |   |   |   |   |   |   |
| TOTAL      CURRENT ASSETS - Cash                                                                         |   | $ | 167 |   |   | $ | 9,470 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY                                                                |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
| TOTAL      CURRENT LIABILITIES                                                                           |   | $ | - |   |   | $ | - |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|      Common      stock, par value $.001, 75,000,000                             |   |   |   |   |   |   |   |   |
|         shares      authorized, 6,946,100 issued and outstanding |   |   | 6,946 |   |   |   | 6,946 |   |
|      Paid      in Capital                                                       |   |   | 22,803 |   |   |   | 20,513 |   |
|      Shareholders'      services - deferred                                     |   |   | - |   |   |   | - |   |
|      (Deficit)      accumulated during the development stage                    |   |   | (29,582 | ) |   |   | (17,989 | ) |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
| Total      Stockholders' Equity                                                                          |   |   | 167 |   |   |   | 9,470 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   | $ | 167 |   |   | $ | 9,470 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS                                                       |

----

| HIGHLAND      BUSINESS SERVICES, INC.              |   |
|----------------------------------------------------|--------|
| (A      DEVELOPMENT STAGE ENTERPRISE)              |   |
| CONDENSED      STATEMENTS OF OPERATIONS            |   |
| (UNAUDITED)                                        |   |
|                                               |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   | Cumulative |   |
|                                               |   |   |   |   |   |   |   | from |   |
|                                               |   |   |   |   |   |   |   | February      24, 2006 |   |
|                                               |   | For      the three months ended |   |   | (Inception) |   |
|                                               |   | August      31, |   |   | to |   |
|                                               |   | 2008 |   |   | 2007 |   |   | August      31, 2008 |   |
|                                               |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |
| REVENUES                                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|    General      and administrative  |   |   | (11,598 | ) |   |   | (1,460 | ) |   |   | (29,597 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total      expenses              |   |   | (11,598 | ) |   |   | (1,460 | ) |   |   | (29,597 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      Income             |   |   | 6 |   |   |   | - |   |   |   | 15 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      (LOSS)                                    |   | $ | (11,592 | ) |   | $ | (1,460 | ) |   | $ | (29,582 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      (LOSS) PER SHARE - BASIC                  |   |   | * |   |   |   | * |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF                    |   |   |   |   |   |   |   |   |   |   |   |   |
|   COMMON      SHARES OUTSTANDING         |   |   | 6,946,100 |   |   |   | 6,000,000 |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| *  less      than $(.01) per share       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS |

----

| HIGHLAND      BUSINESS SERVICES, INC.                                                         |
|-----------------------------------------------------------------------------------------------|
| (A      DEVELOPMENT STAGE ENTERPRISE)                                                         |
| CONDENSED      STATEMENTS OF CASH FLOWS                                                       |
| (UNAUDITED)                                                                                   |
|                                                                                          |
|                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   | Cumulative |   |
|                                                                                          |   |   |   |   |   |   |   | from |   |
|                                                                                          |   |   |   |   |   |   |   | February      24, 2006 |   |
|                                                                                          |   | For      the three months ended |   |   | (Inception) |   |
|                                                                                          |   | August      31, |   |   | to |   |
|                                                                                          |   | 2008 |   |   | 2007 |   |   | August      31, 2008 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                     |   |   |   |   |   |   |   |   |   |
|          Net      (loss)                         |   | $ | (11,592 | ) |   | $ | (1,460 | ) |   | $ | (29,582 | ) |
|          Stock      issued for services          |   |   | - |   |   |   | 350 |   |   |   | 6,000 |   |
|          Contributed      capital                |   |   | 2,290 |   |   |   | 1,110 |   |   |   | 14,288 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY OPERATING ACTIVITIES                                                |   |   | (9,303 | ) |   |   | - |   |   |   | (9,294 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|          Proceeds      from sale of common stock |   |   | - |   |   |   | - |   |   |   | 9,461 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                                |   |   | - |   |   |   | - |   |   |   | 9,461 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE IN CASH                                                                     |   |   | (9,303 | ) |   |   | - |   |   |   | 167 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH,      BEGINNING OF PERIOD                                                                |   |   | 9,470 |   |   |   | - |   |   |   | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH,      END OF PERIOD                                                                      |   | $ | 167 |   |   | $ | - |   |   | $ | 167 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS                                            |

----

| HIGHLAND      BUSINESS SERVICES, INC.                                                      |   |
|--------------------------------------------------------------------------------------------|--------|
| (A      DEVELOPMENT STAGE ENTERPRISE)                                                      |   |
| STATEMENT      OF STOCKHOLDERS' EQUITY                                                     |   |
|                                                                                       |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   | (Deficit) |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   | Shareholders' |   |   |   |   |   | During      the |   |   |   |   |
|                                                                                       |   | Common      Stock |   |   | Services      - |   |   | Paid-in |   |   | Development |   |   |   |   |
|                                                                                       |   | Shares |   |   | Amount |   |   | Deferred |   |   | Capital |   |   | Stage |   |   | Total |   |
| Balances,      at inception                                                                |   |   | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|  Issuance      of common stock, February 24, 2006                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     at      $.001 per share for future services                        |   |   | 6,000,000 |   |   |   | 6,000 |   |   |   | (6,000 | ) |   |   |   |   |   |   |   |   |   |   | - |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Value      of services subsequently rendered                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  for      previously issued shares of common stock                                    |   |   |   |   |   |   |   |   |   |   | 960 |   |   |   |   |   |   |   |   |   |   |   | 960 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Services      contributed to capital                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 549 |   |   |   |   |   |   |   | 549 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      (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 rendered                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  for      previously issued shares of common stock                                    |   |   |   |   |   |   |   |   |   |   | 2,557 |   |   |   |   |   |   |   |   |   |   |   | 2,557 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Services      contributed to capital                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,277 |   |   |   |   |   |   |   | 2,277 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      (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 share on May 28,      2008 |   |   | 946,100 |   |   |   | 946 |   |   |   |   |   |   |   | 8,515 |   |   |   |   |   |   |   | 9,461 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Value      of services subsequently rendered                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for      previously issued shares of common stock                                          |   |   |   |   |   |   |   |   |   |   | 2,483 |   |   |   |   |   |   |   |   |   |   |   | 2,483 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Services      contributed to capital                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,172 |   |   |   |   |   |   |   | 9,172 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (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                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,290 |   |   |   |   |   |   |   | 2,290 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) for the period                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (11,592 | ) |   |   | (11,592 | ) |
| Balances,      August 31, 2008, (unaudited)                                                |   |   | 6,946,100 |   |   | $ | 6,946 |   |   | $ | - |   |   | $ | 22,803 |   |   | $ | (29,582 | ) |   | $ | 167 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS                                         |

----

----

----

----

----

| EXHIBIT      NO. | DESCRIPTION                                                                                                                            |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                   |
| 31.1        | Certification of Chief Executive Officer Pursuant      to Section 302 of the Sarbanes-Oxley Act of  2002                               |
|             |                                                                                                                                   |
| 31.2             | Certification of Chief Financial Officer      Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002                      |
|             |                                                                                                                                   |
| 32.1             | Certification Pursuant to 18 U.S.C. Section 1350,      as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002  |

|                                                   |   |   |  Highland      Business Services, Inc.(Registrant)              |   |
|--------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                                   |   |   |                                                                 |   |
|                                                   |   |   |                                                                 |   |
| /s/      Marie C Moffett                               |   |   | /s/      Rodger DSpainhower                                          |   |
| Name:      Marie C Moffett                             |   |   | Name: Rodger      D Spainhower                                  |   |
| Title: President      and Chief Operating Officer |   |   | Title:      Chief      Executive Officer and Chief Financial Officer |   |
|                                                   |   |   |                                                                 |   |
| Dated: December      2, 2008                      |   |   | Dated: December      2, 2008                                    |   |

----