**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**FORM
      10-QSB**




x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
      the
      quarterly period ended June 30, 2007




o
      TRANSITION REPORT UNDER
      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934




Commission
      file number: 33-140666




**LEGENDS
      BUSINESS GROUP, INC.**


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




**Nevada**
            **20-4465282**(State
                or other jurisdiction of incorporation or organization)
            (IRS
                Employer Identification No.)




**1375
      Semoran Boulevard**


**Casselberry,
      Florida 32707**


(Address
      of principal executive offices)




**407-263-4029**


(Issuer’s
      telephone number)




Copies
      of
      Communications to:


Law
      Office of Barbara A. Moran


1015
      North Semoran Boulevard


#105-465


Casselberry,
      Florida 32707


407-263-4026




Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the last 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 x No
o




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes x   No o




The
      number of shares of Common Stock, $0.001 par value, outstanding on June 30,
      2007, was 77,615,000 shares.




Transitional
                Small Business Disclosure Format (check one): Yes oNox









**LEGENDS
        BUSINESS GROUP, INC.**
 **TABLE
        OF CONTENTS**


**Page
                  Number****PART
                  1**
              **FINANCIAL
                  INFORMATION****Item
                  1**
              **Financial
                  Statements**
              ********
              **Balance
                  Sheet (unaudited)**
              **3******
              **Statements
                  of Operations (unaudited)**
              **4******
              **Statement
                  of Cash Flows (unaudited)**
              **5******
              **Notes
                  to the Financial Statements**
              **6****Part
                  II**
              **OTHER
                  INFORMATION**
              ******Item
                  1**
              **Legal
                  Proceedings**
              **16****Item
                  2**
              **Unregistered
                  Sales of Equity Securities and Use of Proceeds**
              **16****Item
                  3**
              **Defaults
                  Upon Senior Securities**
              **16****Item
                  4**
              **Submission
                  of Matters to a Vote of Security Holders**
              **17****Item
                  5**
              **Other
                  Information**
              **17****Item
                  6**
              **Exhibits
                  and Reports on Form 8-K**
              **17**




2


**ITEM
      1 - FINANCIAL INFORMATION**




**LEGENDS
        BUSINESS GROUP, INC.**
 **(A
          Development Stage Company)**
  **BALANCE
            SHEET**
 **JUNE
              30, 2007**
 **(Unaudited)**
  **ASSETS**Current
                  assets:Cash
              
              $
              524Total
                  current assets
              
              
              524Equipment,
                  net of accumulated depreciation
              
              
              7,039Total
                  Assets
              
              $
              7,563**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**Current
                  Liabilities:Loan
                  from shareholder
              
              $
              2,671Total
                  current liabilities
              
              
              2,671Stockholders'
                  equity:Common
                  stock, $.001 par value, authorized 500,000,000shares;
                  77,615,000 issued and outstandingas
                  of December, 2006
              
              
              77,615Additional
                  paid-in capital
              
              
              7,683,885Accumulated
                  deficit during development stage
              
              
              (7,756,608
              )Total
                  stockholders' equity
              
              
              4,892Total
                  liabilities and stockholders' equity
              
              $
              7,563
  3
 **LEGENDS
          BUSINESS GROUP, INC.**
 **(A
            Development Stage Company)**
  **STATEMENT
              OF OPERATIONS**
 **(Unaudited)**
  **For
                        the Period**
                    
                    **For
                        the Period****Six
                        Months**
                    
                    **March
                        2, 2006**
                    
                    **March
                        2, 2006****Three
                        Months Ended**
                    
                    **Ended**
                    
                    **(Inception)
                        to**
                    
                    **(Inception)
                        to****June
                        30, 2007**
                    
                    **June
                        30, 2006**
                    
                    **June
                        30, 2007**
                    
                    **June
                        30, 2006**
                    
                    **June
                        30, 2007**Revenue
                        from related party
                    
                    $
                    6,000
                    
                    $
                    4,000
                    
                    $
                    12,000
                    
                    $
                    4,000
                    
                    $
                    28,000Expenses:General
                        and administrative
                    
                    
                    5,665
                    
                    
                    3,250,000
                    
                    
                    14,519
                    
                    
                    7,750,089
                    
                    
                    7,771,173Subcontractor
                    
                    
                    -
                    
                    
                    -
                    
                    
                    -
                    
                    
                    -
                    
                    
                    3,000Depreciation
                    
                    
                    687
                    
                    
                    687
                    
                    
                    1,374
                    
                    
                    687
                    
                    
                    3,435Consulting
                        fee - officer
                    
                    
                    -
                    
                    
                    -
                    
                    
                    -
                    
                    
                    -
                    
                    
                    7,000Total
                        expenses
                    
                    
                    6,352
                    
                    
                    3,250,687
                    
                    
                    15,893
                    
                    
                    7,750,776
                    
                    
                    7,784,608Net
                        loss
                    
                    $
                    (352
                    )
                    $
                    (3,246,687
                    )
                    $
                    (3,893
                    )
                    $
                    (7,746,776
                    )
                    $
                    (7,756,608
                    )Weighted
                        average number of commonshares
                        outstanding, basic and fully diluted
                    
                    
                    77,615,000
                    
                    
                    61,164,231
                    
                    
                    77,615,000
                    
                    
                    61,164,231
                    
                    
                    73,519,233Net
                        loss per weighted sharebasic
                        and fully diluted
                    
                    $
                    (0.00
                    )
                    $
                    (0.05
                    )
                    $
                    (0.00
                    )
                    $
                    (0.13
                    )
                    $
                    (0.11
                    )
  4
 **LEGENDS
          BUSINESS GROUP, INC.**
 **(A
            Development Stage Company)**
 **STATEMENT
          OF CASH FLOWS**
 **(Unaudited)**
  **For
                      the Period**
                  
                  **For
                      the Period****Six
                      Months**
                  
                  **March
                      2, 2006**
                  
                  **March
                      2, 2006****Ended**
                  
                  **(Inception)
                      to**
                  
                  **(Inception)
                      to****June
                      30, 2007**
                  
                  **June
                      30, 2006**
                  
                  **June
                      30, 2007****CASH
                      FLOWS FROM OPERATIONS**Net
                      loss
                  
                  $
                  (3,893
                  )
                  $
                  (7,746,776
                  )
                  $
                  (7,756,608
                  )Adjustments
                      to reconcile net loss to net cashDepreciation
                  
                  
                  1,374
                  
                  
                  687
                  
                  
                  3,435Stock
                      based compensation
                  
                  
                  -
                  
                  
                  7,750,000
                  
                  
                  7,750,000**NET
                      CASH USED FOR OPERATING ACTIVITIES**
                  
                  
                  (2,519
                  )
                  
                  3,911
                  
                  
                  (3,173
                  )**CASH
                      FLOWS FROM INVESTING ACTIVITIES**Purchase
                      of equipment
                  
                  
                  -
                  
                  
                  (10,474
                  )
                  
                  (10,474
                  )Proceeds
                      from sale of equipment
                  
                  
                  -
                  
                  
                  
                  
                  
                  -**NET
                      CASH USED IN INVESTING ACTIVITIES**
                  
                  
                  -
                  
                  
                  (10,474
                  )
                  
                  (10,474
                  )**CASH
                      FLOWS FROM FINANCING ACTIVITIES**Issuance
                      of common stock
                  
                  
                  -
                  
                  
                  11,500
                  
                  
                  11,500Proceeds
                      from shareholder loan
                  
                  
                  1,671
                  
                  
                  1,000
                  
                  
                  2,671**NET
                      CASH PROVIDED BY FINANCING ACTIVITIES**
                  
                  
                  1,671
                  
                  
                  12,500
                  
                  
                  14,171Net
                      increase in cash
                  
                  
                  (848
                  )
                  
                  5,937
                  
                  
                  524Cash,
                      beginning of period
                  
                  
                  1,372
                  
                  
                  -
                  
                  
                  -Cash,
                      end of period
                  
                  $
                  524
                  
                  $
                  5,937
                  
                  $
                  524**SUPPLEMENTAL
                      DISCLOSURES OF NON-CASH INVESTING****AND
                      FINANCING ACTIVITIES:**Issuance
                      of 32,500,000 shares of common stock forconsulting
                      services
                  
                  $
                  3,250,000
                  
                  $
                  3,250,000
                  
                  $
                  3,250,000Issuance
                      of 45,000,000 shares of common stock forcompensation
                      to founding shareholder
                  
                  $
                  4,500,000
                  
                  $
                  4,500,000
                  
                  $
                  4,500,000
  5




**LEGENDS
      BUSINESS GROUP, INC.**


**(A
      DEVELOPMENTAL STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2007**






**Note
      1 - Organization and summary of significant accounting principles**




Interim
      Reporting




The
      accompanying unaudited financial statements have been prepared by the Company
      in
      accordance with accounting principles generally accepted in the United States
      of
      America and the rules and regulations of the Securities and Exchange Commission
      for interim financial information. Accordingly, they do not include all of
      the
      information necessary for a comprehensive presentation of financial position
      and
      results of operations; however, such information reflects all adjustments
      (consisting of normal recurring adjustments) which are, in the opinion of
      management, necessary for a fair statement of results for the interim period.
      Operating results for the three and six month periods ended June 30, 2007 are
      not necessarily indicative of the results that may be expected for the year
      ending December 31, 2007.




For
      further information, refer to the audited financial statements and footnotes
      for
      the year ended December 31, 2006 included in the Company’s Form SB-2 filed with
      the SEC on February 13, 2007, as amended June 25, 2007.




Organization




The
      company was organized March 2, 2006 (Date of Inception) under the laws of the
      State of Nevada. The company has not commenced significant operations and,
      in
      accordance with Statement of Financial Accounting Standards No. 7 *Accounting
      and Reporting by Development Stage Enterprises* (“SFAS
      No. 7”), the company is considered a development stage company.




The
      company will provide consulting services to companies
      that may offer any or all of the following services: provide ISP
      (internet service provider), long distance provider, VOIP (Voice Over Internet
      Protocol) provider, and digital content providers, and such client companies
      will make their services available to small and medium size companies. 
These clients will use an independent billing house to bill their
      monthly fees directly to their customers’ telephone bill.  The company
      currently focuses on three stages of consulting with client businesses: billing,
      customer service and scripting.




Accounting
      period




The
      company has adopted an annual accounting period of January through
      December.




Use
      of
      estimates




The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities and disclosure of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts of revenue and expenses during the reporting period. Actual
      results could differ significantly from those estimates.


Cash
        and cash equivalents
  For
        the
        purpose of the statements of cash flows, all highly liquid investments with
        a
        maturity of three months or less are considered to be cash
        equivalents.




6




Revenue
      recognition




The
      company provides consulting services (marketing, billing and script writing)
      to
      companies that perform services to larges telecommunications companies. The
      company enters into contracts for one year payable monthly. Revenue is
      recognized as monthly billings are completed.




Furniture
      and equipment




Furniture
      and equipment are stated at cost less accumulated depreciation. It is the policy
      of the company to capitalize items greater than or equal to $1,000 and provide
      depreciation based on the estimated useful life of individual assets, calculated
      using the straight line method.




Estimated
      useful lives range as follows:




YearsFurniture
                and equipment
            
            
            3
                - 5Computer
                hardware
            
            
            3Vehicles
            
            
            5




Fair
      value of financial instruments




Fair
      value estimates discussed herein are based upon certain market assumptions
      and
      pertinent information available to management as of June 30, 2007. The
      respective carrying value of certain on-balance-sheet financial instruments
      approximated their fair values. These financial instruments include cash,
      accounts payable and notes payable. Fair values were assumed to approximate
      carrying values for cash and payables because they are short term in nature
      and
      their carrying amounts approximate fair values or they are payable on
      demand.




Earnings
      per share




The
      company has adopted Statement of Financial Accounting Standards No. 128. *Earnings
      Per Share* ("SFAS
      No. 128"). Basic earnings per common share ("EPS") calculations are determined
      by dividing net income by the weighted average number of shares of common stock
      outstanding during the year. Diluted earning per common share calculations
      are
      determined by dividing net income by the weighted average number of common
      shares and dilutive common share equivalents outstanding. During periods when
      common stock equivalents, if any, are anti- dilutive they are not considered
      in
      the computation.




Income
      taxes




The
      company has adopted Statement of Financial Accounting Standard No. 109, *Accounting
      for Income Taxes* ("SFAS
      No. 109") for recording the provision for income taxes. Deferred tax assets
      and
      liabilities are computed based upon the difference between the financial
      statement and income tax basis of assets and liabilities using the enacted
      marginal tax rate applicable when the related asset or liability is expected
      to
      be realized or settled. Deferred income tax expenses or benefits are based
      on
      the changes in the asset or liability each period. If available evidence
      suggests that it is more likely than not that some portion or all of the
      deferred tax assets will not be realized, a valuation allowance is required
      to
      reduce the deferred tax assets to the amount that is more likely than not to
      be
      realized. Future changes in such valuation allowance are included in the
      provision for deferred income taxes in the period of change.




7




The
      provision for income taxes differs from the amount computed by applying the
      statutory federal income tax rate to income before provision for income taxes
      because of differences in amounts deductible for tax purposes. Deferred income
      taxes may arise from temporary differences resulting from income and expense
      items reported for financial accounting and tax purposes in different periods.
      Deferred taxes are classified as current or non-current, depending on the
      classification of assets and liabilities to which they relate. Deferred taxes
      arising from temporary differences that are not related to an asset or liability
      are classified as current or non-current depending on the periods in which
      the
      temporary differences are expected to reverse.




Recent
      pronouncements




In
      February 2006, the FASB issued SFAS 155, “Accounting for Certain Hybrid
      Financial Instruments." This Statement amends FASB Statements No. 133,
      Accounting for Derivative Instruments and Hedging Activities, and No. 140,
      Accounting for Transfers and Servicing of Financial Assets and Extinguishments
      of Liabilities. This Statement
      resolves issues addressed in Statement 133 Implementation Issue No. Dl,
“Application of Statement 133 to Beneficial Interests in Securitized Financial
      Assets.” This Statement:




a)  Permits
      fair value remeasurement for any hybrid financial instrument that contains
      an
      embedded derivative that otherwise would require bifurcation.




b)  Clarifies
      which interest-only strips and principal-only strips are not subject to the
      requirements of Statement 133.




c)  Establishes
      a requirement to evaluate interests in securitized financial assets to identify
      interests that are freestanding derivatives or that are hybrid financial
      instruments that contain an embedded derivative requiring
      bifurcation.




d)  Clarifies
      that concentrations of’ credit risk in the form of subordination are not
      embedded derivatives.




e)  Amends
      Statement 140 to eliminate the prohibition on a qualifying special-purpose
      entity from holding a derivative financial instrument that pertains to a
      beneficial interest other than another derivative financial
      instrument.




The
      fair
      value election provided for in paragraph 4(e) of this Statement may also be
      applied upon adoption of this Statement for hybrid financial instruments that
      had been bifurcated under paragraph 12 of Statement 133 prior to the adoption
      of
      this Statement. Earlier adoption is permitted as of the beginning of our fiscal
      year, provided we have not yet issued financial statements, including financial
      statements for any interim period, for that fiscal year. Provisions of this
      Statement may be applied to instruments that we hold at the date of adoption
      on
      an instrument-by-instrument basis.




Adoption
      of this Statement is required as of the beginning of the first fiscal year
      that
      begins after September 15, 2005. The adoption of this statement is not expected
      to have a material impact on the company’s financial statements.




In
        March
        2006, The FASB issued SEAS 156 *,* “Accounting
        for Servicing of Financial Assets.” This Statement amends FASB Statement No.
        140, Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities, with respect to the accounting for separately
        recognized servicing assets and servicing liabilities. This
        Statement:
  a)  Requires
        an entity to recognize a servicing asset or servicing liability each time
        it
        undertakes an obligation to service a financial asset by entering into a
        servicing contract in certain situations.




8




b)  Requires
      all separately recognized servicing assets and servicing liabilities to be
      initially measured at fair value, if practicable.




c)  Permits
      an entity to choose either the amortization method or the fair value measurement
      method for each class of separately recognized servicing assets and servicing
      liabilities.




d)  At
      its
      initial adoption, permits a one-time reclassification of available-for-sale
      securities to trading securities by entities with recognized servicing rights,
      without calling into question the treatment of other available-for-sale
      securities under Statement 115, provided that the available-for-sale securities
      are identified in some manner as offsetting the entity’s exposure to changes in
      fair value of servicing assets or servicing liabilities that a servicer elects
      to subsequently measure at fair value.




e)  Requires
      separate presentation of servicing assets and servicing liabilities subsequently
      measured at fair value in the statement of financial position and additional
      disclosures for all separately recognized servicing assets and servicing
      liabilities.




Adoption
      of this Statement is required as of the beginning of the first fiscal year
      that
      begins after September 15, 2006. The adoption of this statement is not expected
      to have a material impact on the company’s financial statements.




In
      September 2006, the FASB issued Statement No. 157, “Fair Value Measurements.”
This Statement defines fair value, establishes a framework for measuring fair
      value in generally accepted accounting principles and expands disclosure about
      fair value measurement. The implementation of this guidance is not expected
      to
      have any impact on the company’s financial statements.




In
      September 2006, the FASB issued Statement of Financial Accounting Standards
      No.
      158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
      Plans, an amendment of PASS Statements No. 87, 106, and 132(R)” (“SFAS No.
      158”). SFAS No. 158 requires companies to recognize a net liability or asset and
      an offsetting adjustment to accumulated other comprehensive income to report
      the
      funded status of defined benefit pension and other postretirement benefit plans.
      SFAS No. 158 requires prospective application, recognition and disclosure
      requirements effective for the company’s fiscal year ending December 31, 2007.
      Additionally, SFAS No. 158 requires companies to measure plan assets and
      obligations at their year-end balance sheet date. This requirement is effective
      for the company’s fiscal year ending December 31, 2009. The company is currently
      evaluating the impact of the adoption of SFAS No. 258 and does not expect that
      it will have a material impact on its financial statements.




In
      September 2006, the United States Securities and Exchange Commission (“SEC”),
      adopted SAB No. 108, “Considering the Effects of Prior Year Misstatements when
      Quantifying Misstatements in Current Year Financial Statements.” This SAB
      provides guidance on the consideration of the effects to prior year
      misstatements in quantifying current year misstatements for the purpose of
      a
      materiality assessment. SAB 108 establishes an approach that requires
      quantification of financial statement errors based on the effects of each of
      the
      company’s balance sheet and statement of operations financial statements and the
      related financial statement disclosures. The SAB permits existing public
      companies to record the cumulative effect of initially applying this approach
      in
      the first year ending after November 15, 2006 by recording the necessary
      correcting adjustments to the carrying values of assets and liabilities as
      of
      the beginning of that year with the offsetting adjustment recorded to the
      opening balance of retained earnings. Additionally, the use of the cumulative
      effect transition method requires detailed disclosure of the nature and amount
      of each individual error being corrected through the cumulative adjustment
      and
      how and when it arose. The company is currently evaluating the impact, if any,
      that SAB 108 may have on the company’s results of operations or financial
      position.




9




In
      July
      2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in
      Income Taxes-an interpretation of FASB Statement No. 109.” This Interpretation
      prescribes a recognition threshold and measurement attribute for the financial
      statement recognition and measurement of a tax position taken or expected to
      be
      taken in a tax return. Interpretation No. 48 also provides guidance on
      derecognition, classification, interest and penalties,  accounting
      in interim periods, disclosure, and transition. Interpretation No. 48 is
      effective for fiscal years beginning after December 15, 2006 and the company
      is
      currently evaluating the impact, if any, that FASB Interpretation No. 48 may
      have on it’s results of operations or financial position.




**Note
      2 - Going concern**




As
      shown
      in the accompanying financial statements, as is typical of companies going
      through the development stage, the Company incurred a net loss for the period
      ended June 30, 2007. The Company is currently in the development stage and
      there
      is no guarantee whether the Company will be able to generate enough revenue
      and/or raise capital to support current operations and generate anticipated
      sales. This raises substantial doubt about the Company’s ability to continue as
      a going concern. Management believes that the Company’s future capital
      requirements will depend on many factors, including the success of the Company’s
      consulting and marketing services. The financial statements do not include
      any
      adjustments that might result from the outcome of these
      uncertainties.




**Note
      3 - Furniture and Equipment**




Furniture
      and equipment consists of the following categories at June 30,
      2007:


Computers
              
              $
              3,000Software
              
              
              7,47410,474Less
                  accumulated depreciation
              
              
              3,435Total
              
              $
              7,039





Depreciation
      expense for the six months ended June 30, 2007 totaled $1,374.




**Note
      4 - Income taxes**




Deferred
      income taxes may arise from temporary differences resulting from income and
      expense items reported for financial accounting and tax purposes in different
      periods. Deferred taxes are classified as current or non-current, depending
      on
      the classification of assets and liabilities to which they relate. Deferred
      taxes arising from temporary differences that are not related to an asset or
      liability are classified as current or non-current depending on the periods
      in
      which the temporary differences are expected to reverse.




The
        provision for income taxes differs from the amount computed by applying the
        statutory federal income tax rate to income before provision for income taxes.
        The sources and tax effects of the differences for the periods presented
        are as
        follows:
  Income
                    tax provision at thefederal
                    statutory rate
                
                
                34
                %Effect
                    of operating losses
                
                
                -34
                %0
                %




10




Net
      deferred tax assets consist of the following:


For
                  the six
                months
                  ended
                June
                  30,2007Gross
                  deferred tax asset
              
              $
              127,000Gross
                  deferred tax liability
              
              
              -Valuation
                  allowance
              
              
              (127,000
              )Net
                  deferred tax asset
              
              $
              -




The
      company did not pay any income taxes during the six months ended June 30,
      2007.




**Note
      5 - Stockholders’ equity**




In
      March
      2006, the Company issued 45,000,000 shares of its $0.001 par value common stock
      as founder's shares. In connection with the issuance of these 45,000,000 shares,
      the company recorded compensation expense in the amount of $4,500,000. The
      shares were deemed to have been issued pursuant to an exemption provided by
      Section 4(2) of the Act, which exempts from registration "transactions by an
      issuer not involving any public offering."




In
      May
      2006, the Company issued 115,000 shares of its $0.001 par value common stock
      for
      $11,500 cash. The shares were deemed to have been issued pursuant to an
      exemption provided by Section 4(2) of the Act, which exempts from registration
      "transactions by an issuer not involving any public offering."




In
      May
      2006, the Company issued 32,500,000 shares of its $0.001 par value common stock
      for consulting services. In connection with the issuance of these 32,500,000
      shares, the company recorded compensation expense in the amount of $3,250,000.
      The shares were deemed to have been issued pursuant to an exemption provided
      by
      Section 4(2) of the Act, which exempts from registration "transactions by an
      issuer not involving any public offering."




There
      have been no other issuances of common stock.




**Note
      6 - Warrants and options**




There
      are
      no warrants or options outstanding to acquire any additional shares of common
      stock.




**Note
      7 - Related party transactions**




Amounts
      due to the company’s chief executive officer totaled $2,671 at June 30, 2007.
      These amounts primarily represent loans to pay company startup
      expenses.




On
      March
      31, 2006, the Company entered into a two year contract to provide consulting
      services for K&L International, a company solely owned by our Chairman, CEO,
      and President. The contract, with a value of approximately $48,000, provides
      that the Company will receive $2,000 per month, which commenced April 2006.
      Through April 2007, the Company has received $30,000 under the terms of the
      consulting contract.




11




The
      $28,000 revenue reported for the period March 2, 2006 (inception) to June 30,
      3007 represents revenue from consulting services provided based on the above
      two
      year contract.




The
      company is currently occupying space under an oral rental agreement with
      President and CEO Larry Powalisz, who owns the space and is not charging the
      Company rent.




**Note
      8 - Commitments and contingent liabilities**




Legal
      matters - The
      company is occasionally party to litigation or threat of litigation arising
      in
      the normal course of business. Management, after consultation with legal
      counsel, does not believe that the resolution of any such matters will have
      a
      material effect on the company’s financial position or results of
      operations.


12




**FORWARD-LOOKING
      STATEMENTS**





This
      document contains “forward-looking statements” within the meaning of the Private
      Securities Litigation Reform Act of 1995. All statements other than statements
      of historical fact are “forward-looking statements” for purposes of federal and
      state securities laws, including, but not limited to, any projections of
      earnings, revenue or other financial items; any statements of the plans,
      strategies and objections of management for future operations; any statements
      concerning proposed new services or developments; any statements regarding
      future economic conditions or performance; any statements or belief; and any
      statements of assumptions underlying any of the foregoing.




Forward-looking
      statements may include the words “may,” “could,” “estimate,” “intend,”
“continue,” “believe,” “expect,” “anticipate” or other similar words. These
      forward-looking statements present our estimates and assumptions only as of
      the
      date of this report. Except for our ongoing securities laws, we do not intend,
      and undertake no obligation, to update any forward-looking
      statement.




Although
      we believe that the expectations reflected in any of our forward-looking
      statements are reasonable, actual results could differ materially from those
      projected or assumed in any of our forward-looking statements. Our future
      financial condition and results of operations, as well as any forward-looking
      statements, are subject to change and inherent risks and uncertainties. The
      factors impacting these risks and uncertainties include, but are not limited
      to:





**•**
            our
                ability to successfully compete in the professional services
                industry;


**•**
            difficulties
                developing a new line of business in the professional services
                industry;


**•**
            failure
                to identify, develop or profitably manage additional
                businesses;


**•**
            failure
                to obtain new customers or retain existing
                customers;


**•**
            inability
                to efficiently manage our
                operations;


**•**
            inability
                to achieve future operating
                results;


**•**
            inability
                to obtain capital for future
                growth;


**•**
            loss
                of key executives; and


**•**
            general
                economic and business conditions.





**For
      a detailed description of these and other factors that could cause actual
      results to differ materially from those expressed in any forward-looking
      statement, please see “Factors That May Affect Our Results of Operation” in this
      document and in our Prospectus and SB-2 filing SEC on February 13, 2007, as
      amended June 25, 2007, available at our website at** **www.lbgi.net** **or at the SEC’s website at www.sec.gov.**




13





**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS**




**Plan
      of Operation**





Since
      the
      inception of Legends Business Group, Inc. (hereinafter LBGI), we have not been
      engaged in significant operation, nor have we had significant revenues, as
      we
      are a development stage company. Our plan of operation for the next twelve
      months will be to expand our client base. We intend to market our consulting
      services to small and medium size businesses that ISP (Internet Service
      Providers), long distance providers, VOIP (Voice Over Internet Protocol)
      providers, and digital content providers that rely on the services of third
      party billing clearinghouses, and to companies that make their sales though
      direct mailings and though direct website sales.





As
      we
      continue to implement our business plan, we will need to raise additional funds.
      We anticipate obtaining additional financing to fund operations through common
      stock offerings, to the extent available, or to obtain additional financing
      to
      the extent necessary to augment our working capital.





Our
      current related party contract is providing sufficient revenue to continue
      current operations, and will provide sufficient revenue to meet our needs over
      the next twelve months.





We
      are
      not currently performing any product research or development, and do not have
      plans to do so for the next twelve month period.





LBGI
      does
      intend to continue to use the income from our current client to continue to
      meet
      our operating expenses.





We
      do not
      have need for the purchase of any property or equipment at this time.





LBGI
      will
      not have any significant changes in the current number of employees.





**Interim
      Period**





This
      is
      an interim period report. For a full discussion of our business, please see
      our
      Prospectus and SB-2 filing available at our website at www.lbgi.net or also
      available at the SEC’s website at www.sec.gov.




**Off-Balance
      Sheet Arrangements**




We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on our financial condition, changes in financial
      condition, revenues or expenses, results or operations, liquidity, capital
      expenditures or capital resources that is material to investors.





**Going
      Concern**




The
      accompanying financial statements have been prepared in conformity with
      accounting principles generally accepted in the United States, which
      contemplates continuation of the Company as a going concern. The Company’s
      operations generated limited income during the current period
      ended.




The
      future success of the Company is likely dependent on its ability to attain
      additional capital to develop its proposed consulting offerings and ultimately,
      upon its ability to attain future profitable operations. There can be no
      assurance that the Company will be successful in obtaining such financing,
      or
      that it will attain positive cash flow from operations.




14




**FACTORS
      THAT MAY AFFECT OUR RESULTS OF OPERATION**





***We
      are a development stage company organized in March 2006 and have no operating
      history, which makes an evaluation of us extremely difficult. At this stage
      of
      our business operations, even with our good faith efforts, potential investors
      have a high probability of losing their investment.***




We
      were
      incorporated in March of 2006 as a Nevada corporation. As a result of our recent
      start up, we have generated limited revenues from operations and have been
      focused on organizational, start-up, and market analysis activities since we
      incorporated. Our operating activities during this period consisted primarily
      of
      developing contacts for our consulting services. There is nothing at this time
      on which to base an assumption that our business operations will prove to be
      successful or that we will ever be able to operate profitably. Our future
      operating results will depend on many factors, including our ability to raise
      adequate working capital, demand for our services, the level of our competition
      and our ability to attract and maintain key management and
      employees.




Our
      prospects are subject to the risks and expenses encountered by start-up
      companies, such as ours, which are establishing a business as consulting firm.
      Our limited operating history makes it difficult or impossible to predict future
      results of our operations. We may not establish a client base that will make
      us
      profitable, which might result in the loss of some or all of your investment
      in
      our common stock.




You
      should consider our prospects in light of the risks and difficulties frequently
      encountered by early stage companies in the rapidly evolving consulting market.
      These risks include, but are not limited to, an unpredictable business
      environment, the difficulty of managing growth and the use of our business
      model. To address these risks, we must, among other things:





·  expand
      our customer base;


·  enhance
      our name recognition;


·  expand
      our product and service offerings;


·  successfully
      implement our business and marketing strategy;


·  provide
      superior customer service;


·  respond
      effectively to competitive and technological developments; and


·  attract
      and retain qualified personnel.





***Because
      our common stock is deemed a low-priced “Penny” stock, an investment in our
      common stock should be considered high risk and subject to marketability
      restrictions. These marketability restrictions may prevent you from liquidating
      your stock, thus causing a loss of your investment.***




Since
      our
      common stock is a penny stock, as defined in Rule 3a51-1 under the Securities
      Exchange Act, it will be more difficult for investors to liquidate their
      investment even if and when a market develops for the common stock. Until the
      trading price of the common stock rises above $5.00 per share, if ever, trading
      in the common stock is subject to the penny stock rules of the Securities
      Exchange Act specified in rules 15g-1 through 15g-10. Those rules require
      broker-dealers, before effecting transactions in any penny stock,
      to:




**•**
            Deliver
                to the customer, and obtain a written receipt for, a disclosure
                document;


**•**
            Disclose
                certain price information about the
                stock;


**•**
            Disclose
                the amount of compensation received by the broker-dealer or any associated
                person of the broker-dealer;


**•**
            Send
                monthly statements to customers with market and price information
                about
                the penny stock; and


**•**
            In
                some circumstances, approve the purchaser’s account under certain
                standards and deliver written statements to the customer with information
                specified in the rules.




Consequently,
      the penny stock rules may restrict the ability or willingness of broker-dealers
      to sell the common stock and may affect the ability of holders to sell their
      common stock in the secondary market and the price at which such holders can
      sell any such securities. These additional procedures could also limit our
      ability to raise additional capital in the future.




15




***NASD
      sales practice requirements may also limit a stockholder's ability to buy and
      sell our stock, if and when we are quoted on the OTC Bulletin
      Board.***




In
      addition to the “penny stock” rules described above, the National Association of
      Securities Dealers (NASD) has adopted rules that require that in recommending
      an
      investment to a customer, a broker-dealer must have reasonable grounds for
      believing that the investment is suitable for that customer. Prior to
      recommending speculative low priced securities to their non-institutional
      customers, broker-dealers must make reasonable efforts to obtain information
      about the customer's financial status, tax status, investment objectives and
      other information. Under interpretations of these rules, the NASD believes
      that
      there is a high probability that speculative low priced securities will not
      be
      suitable for at least some customers. The NASD requirements make it more
      difficult for broker-dealers to recommend that their customers buy our common
      stock, which may limit your ability to buy and sell our stock and have an
      adverse effect on the market for our shares.





**ITEM
      3. CONTROLS AND PROCEDURES**




We
      maintain disclosure controls and procedures designed to ensure that information
      required to be disclosed in reports filed under the Securities Exchange Act
      of
      1934, as amended, is recorded, processed, summarized and reported within the
      specified time periods. As of the end of the period covered by this report,
      Mr.
      Larry Powalisz, our Chief Executive Officer and Principal Financial Officer
      evaluated the effectiveness of our disclosure controls and procedures pursuant
      to Exchange Act Rule 13a-15. Based on the evaluation, which disclosed no
      significant deficiencies or material weaknesses, Mr. Powalisz, our Chief
      Executive Officer and Principal Financial Officer concluded that our disclosure
      controls and procedures are effective in timely alerting him to material
      information required to be included in our periodic SEC filings. There were
      no
      changes in our internal control over financial reporting that occurred during
      our most recent fiscal quarter that have materially affected, or are reasonably
      likely to materially affect, our internal control over financial
      reporting.





It
      should
      be noted, however, that no matter how well designed and operated, a control
      system can provide only reasonable, not absolute, assurance that the objectives
      of the control system are met. In addition, the design of any control system
      is
      based in part upon certain assumptions about the likelihood of future events.
      Because of these and other inherent limitations of control systems (including
      faulty judgments in decision making or breakdowns resulting from simple errors
      or mistakes), there can be no assurance that any design will succeed in
      achieving its stated goals under all potential conditions. Additionally,
      controls can be circumvented by individual acts, collusion or by management
      override of the controls in place.





**PART
      II--OTHER INFORMATION**





**Item
                1.****Legal
                Proceedings**




We
      are
      not a party to any material legal proceedings.




**Item
      2. Unregistered Sales of Equity Securities and Use of
      Proceeds**




There
      have been no sales of equity securities in the second quarter of
      2007.





**Item
                3.****Defaults
                Upon Senior Securities**




There
      have been no defaults upon senior securities.




16




**Item
                4.****Submission
                of Matters to a Vote of Security
                Holders**




There
      have been no submissions of matters to a vote of security holders.




**Item
                5.****Other
                Information**




None.




**Item
      6. Exhibits**




**Incorporated
                by reference****Exhibit**
            
            **Exhibit
                Description**
            
            **Filed
                herewith**
            
            **Form**
            
            **Period
                ending**
            
            **Exhibit**
            
            **Filing
                date**3.1(i)
            
            Articles
                of Incorporation
            
            
            
            SB-2
            
            
            
            3.1(i)
            
            02/13/073.1(ii)
            
            Bylaws
                of Legends Business Group, Inc.
            
            
            
            SB-2
            
            
            
            3.1(ii)
            
            02/13/0731
            
            Certification
                  of Larry Powalisz pursuant to Section 302 of the Sarbanes-Oxley
                  Act
            
            X32
            
            Certification
                of Larry Powalisz pursuant to Section 906 of the Sarbanes-Oxley
                Act
            
            X




SIGNATURES




In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




LEGENDS
      BUSINESS GROUP, INC.


(Registrant)




By:/s/
                Larry
                PowaliszLarry
                Powalisz, President and CEO
              Legends
                Business Group, Inc.


Date:
      August 3, 2007




17