**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**FORM
      10-Q**





**x** QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES
      EXCHANGE ACT OF 1934





**For
      the quarterly period ended June 30, 2008**





OR





o
      TRANSITION REPORT
      PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES
      EXCHANGE ACT OF 1934





For
      The
      Transition Period From April 1, 2008 To June 30, 2008


**LEGENDS
                  BUSINESS GROUP, INC.**(Name
                  of small business issuer in its
                  charter)




Nevada
            
            33-140666
            
            20-4465282(State
                or Jurisdiction of
            
            Commission
                File Number
            
            (I.R.S.
                EmployerIncorporation
                or organization
            
            
            
            Identification
                No.)




1375
      Semoran Boulevard


Casselberry,
      Florida 32707


407-263-4029





Indicate
      by check mark whether the Registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 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 large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      definition of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.




Large
                accelerated filer o
            Accelerated
                filer oNon-accelerated
                filer o (Do
                not check if a smaller reporting company)
            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
      x  No
o**





The
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates computed by


reference
      to the price at which the common equity was last sold, as of July 9, 2008 was
      $16,307,500.





32,615,000
      shares of common stock were outstanding as of June 30, 2008.










**LEGENDS
      BUSINESS GROUP**


**FORM
      10-Q**





**INDEX**





**PART
                I: FINANCIAL INFORMATION**
            
            **PAGE**Item
                1.  Financial Statements.
            
            2Balance
                Sheet as of June 30, 2008
            
            2Statement
                of Operations and Comprehensive Income for the three months and six
                months
                ended June 30, 2008 and 2007
            
            3Statement
                of Cash Flows for the six months ended June 30, 2008 and
                2007
            
            4Notes
                to Financial Statements
            
            5Item
                2.  Management's Discussion and Analysis of Financial Condition
                and Results of Operations
            
            12Item
                3.  Quantitative and Qualitative Disclosures About Market
                Risk
            
            16Item
                4.  Controls and Procedures
            
            16**PART
                II:  OTHER INFORMATION**Item
                1.  Legal Proceedings
            
            16Item
                2.  Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            16Item
                3.  Defaults Upon Senior Securities
            
            16Item
                4.  Submission of Matters to a Vote of Security
                Holders
            
            17Item
                5.  Other Information
            
            17Item
                6.  Exhibits
            
            17**SIGNATURES**
            
            18


1


**ITEM
        1. FINANCIAL STATEMENTS**
 
 **LEGENDS
        BUSINESS GROUP, INC.**
 **(A
        Development Stage Company)**
 
 **BALANCE
        SHEET**
 **JUNE
        30, 2008**
 **(Unaudited)**
 
 **ASSETS****Current
                  assets:**Cash
              
              $
              108,284Total
                  current assets
              
              
              108,284**Equipment,
                  net of accumulated depreciation**
              
              
              4,291**Total
                  assets**
              
              $
              112,575**LIABILITIES
                  AND STOCKHOLDERS' DEFICIENCY****Current
                  liabilities:**Notes
                  payable - Line of Credit
              
              $
              100,000Advances
                  from shareholder
              
              
              2,671Accrued
                  salary
              
              
              21,667**Total
                  current liabilities**
              
              
              124,338**Stockholders'
                  deficiency:**Preferred
                  stock, $.0001 par value, authorized 100,000shares;
                  45,000 issued and outstandingas
                  of June 30, 2008
              
              
              5Common
                  stock, $.001 par value, authorized 500,000,000shares;
                  32,615,000 issued and outstandingas
                  of June 30, 2008
              
              
              32,615Additional
                  paid-in capital
              
              
              7,728,880Accumulated
                  deficit during development stage
              
              
              (7,773,263
              )**Total
                  stockholders' deficiency**
              
              
              (11,763
              )**Total
                  liabilities and stockholders' deficiency**
              
              $
              112,575
 The
          accompanying notes are an integral of the
          financial statements.
 2
  **LEGENDS
        BUSINESS GROUP, INC.**
 **(A
        Development Stage Company)**
 
 **STATEMENT
        OF OPERATIONS**
 **(Unaudited)**
 
 **For the Period**
                **March 2, 2006****Three Months Ended**
              
              **Six Months Ended**
              
              **Six Months Ended**
              
              **(Inception) to****June 30, 2008**
              
              **June 30, 2007**
              
              **June 30, 2008**
              
              **June 30, 2007**
              
              **June 30, 2008****Revenue:**Consulting
                  and brokerage fees
              
              $
              158,070
              
              $
              -
              
              $
              158,070
              
              $
              -
              
              $
              158,070Agent
                  agreement fees
              
              
              6,898
              
              
              -
              
              
              7,535
              
              
              -
              
              
              7,535Revenue
                  from related party
              
              
              2,000
              
              
              6,000
              
              
              8,000
              
              
              12,000
              
              
              48,000166,968
              
              
              6,000
              
              
              173,605
              
              
              12,000
              
              
              213,605**Cost
                  of services:**Client
                  marketing
              
              
              150,414
              
              
              -
              
              
              150,414
              
              
              -
              
              
              150,414**Gross
                  profit**
              
              
              16,554
              
              
              6,000
              
              
              23,191
              
              
              12,000
              
              
              63,191**Expenses:**General
                  and administrative
              
              
              38,032
              
              
              5,665
              
              
              41,225
              
              
              14,519
              
              
              7,820,271Subcontractor
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              3,000Depreciation
              
              
              687
              
              
              687
              
              
              1,374
              
              
              1,374
              
              
              6,183Consulting
                  fee - officer
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              7,000**Total
                  expenses**
              
              
              38,719
              
              
              6,352
              
              
              42,599
              
              
              15,893
              
              
              7,836,454**Net
                  loss**
              
              $
              (22,165
              )
              $
              (352
              )
              $
              (19,408
              )
              $
              (3,893
              )
              $
              (7,773,263
              )Weighted
                  average number of commonshares
                  outstanding, basic and fully diluted
              
              
              32,615,000
              
              
              77,615,000
              
              
              32,615,000
              
              
              77,615,000
              
              
              75,278,682Net
                  loss per weighted sharebasic
                  and fully diluted
              
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.00
              )
              $
              (0.10
              )
 The accompanying notes are an integral of the financial statements.3 **LEGENDS BUSINESS GROUP, INC.****(A Development Stage Company)**
 **STATEMENT
        OF CASH FLOWS**
 **(Unaudited)**
 
 **For the Period**
                **March 2, 2006****Six Months Ended**
              
              **Six Months Ended**
              
              **(Inception) to****June 30, 2008**
              
              **June 30, 2007**
              
              **June 30, 2008****Cash
                  flows from operations**Net
                  loss
              
              $
              (19,408
              )
              $
              (3,893
              )
              $
              (7,773,263
              )Adjustments
                  to reconcile net loss to net cashused
                  for operating activities:Depreciation
              
              
              1,374
              
              
              1,374
              
              
              6,183Accrued
                  salary
              
              
              21,667
              
              
              -
              
              
              21,667Stock
                  based compensation
              
              
              -
              
              
              -
              
              
              7,750,000**Net
                  cash provided by (used in) operating activities**
              
              
              3,633
              
              
              (2,519
              )
              
              4,587**Cash
                  flows from investing activities**Purchase
                  of equipment
              
              
              -
              
              
              -
              
              
              (10,474
              )Proceeds
                  from sale of equipment
              
              
              -
              
              
              -
              
              
              -**Net
                  cash used in investing activities**
              
              
              -
              
              
              -
              
              
              (10,474
              )**Cash
                  flows from financing activities**Issuance
                  of common stock
              
              
              -
              
              
              -
              
              
              11,500Proceeds
                  from notes payable - line of credit
              
              
              100,000
              
              
              
              
              
              100,000Advances
                  from shareholder
              
              
              -
              
              
              1,671
              
              
              2,671**Net
                  cash provided by financing activities**
              
              
              100,000
              
              
              1,671
              
              
              114,171**Net
                  increase in cash**
              
              
              103,633
              
              
              (848
              )
              
              108,284Cash,
                  beginning of period
              
              
              4,651
              
              
              1,372
              
              
              -**Cash,
                  end of period**
              
              $
              108,284
              
              $
              524
              
              $
              108,284**Supplemental
                  disclosures of non-cash investing****and
                  financing activities:**Issuance
                  of 32,500,000 shares of common stock forconsulting
                  services
              
              $
              -
              
              $
              -
              
              $
              3,250,000Issuance
                  of 45,000,000 shares of common stock forcompensation
                  to founding shareholder (On May 29, 2008,these
                  45,000,000 shares of common stock were exchangedfor
                  45,000 shares of preferred stock)
              
              $
              -
              
              $
              -
              
              $
              4,500,000
  The
        accompanying notes are an integral of the
        financial statements.


4




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




Organization




Legends
      Business Group, Inc. (“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. The Company has added new clients, whose
      businesses sell their products through Internet marketing, and bill through
      third party billing houses.  These businesses offer services that include
      email and identity theft protection.




Interim
      Reporting




The
      accompanying unaudited interim financial statements of the Company have been
      prepared in accordance with accounting principles generally accepted in the
      United States of American and the rules of the SEC, and should be read in
      conjunction with the audited financial statements and notes thereto included
      in
      the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2008.
      In the opinion of management, all adjustments, consisting of normal recurring
      adjustments, necessary for a fair presentation of financial position and the
      results of operations for the interim periods presented have been reflected
      herein. The results of operations for interim periods are not necessarily
      indicative of the results to be expected for the full year.




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.




5




Revenue
      recognition




The
      Company provides consulting services (marketing, billing and script writing)
      to
      companies that perform services to largest 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:




**Years**Furniture
                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, 2008. 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 earnings 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.




6




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.




7




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.




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 its results of operations or financial position.




8




**Note
      2 – Going concern**




As
      shown
      in the accompanying financial statements, as is typical of companies going
      through the development stage, the Company incurred an accumulated net loss
      through the period ended June 30, 2008. 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,
      2008:




Computers
            
            $
            3,000Software
            
            
            7,47410,474Less
                accumulated depreciation
            
            
            6,183Total
            
            $
            4,291




Depreciation
      expense for the six months ended June 30, 2008 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
            %




9




Net
      deferred tax assets consist of the following:




For the six months endedJune
                30,2008Gross
                deferred tax asset
            
            $
            3,000,000Gross
                deferred tax liability
            
            
            -Valuation
                allowance
            
            
            (3,000,000
            )Net
                deferred tax asset
            
            $
            -




The
      Company did not pay any income taxes during the six months ended June 30,
      2008.




**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."




In
      May
      2008, the Company amended the articles to authorize 100,000 shares of Preferred
      Shares at $0.0001 par value. Contemporaneously, the Company issued 45,000 shares
      of Preferred Stock to the President and CEO in exchange for 45,000,000 shares
      of
      Common Stock. This reduced the Common shares outstanding from 77,615,000 to
      32,615,000.




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**




The
      Company’s Chief Executive Officer has advanced the Company a total of $2,671
      through June 30, 2008, primarily to fund startup expenses. These non-interest
      bearing advances are due on demand.




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 June 30, 2008, the Company has received $48,000 under the terms of
      the
      consulting contract. The contract ended in April 2008 and was not renewed.
      For
      the six month period ended June 30, 2008, the Company recorded $2,000 in revenue
      u nder
      the
      terms of this consulting contract.




10




In
      May
      2008, the Company entered into an employment agreement with its President and
      CEO, which provides for an annual salary of $130,000. Through June 30, 2008, the
      Company has accrued a total of $21,667 for unpaid wages due under the terms
      of
      the employment agreement.




The
      Company is using space rent free that is owned by the founding
      shareholder.




**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.




**Note
      9 – Agent agreements**




On
      August
      3, 2007 the Company signed an agreement with ILD Telecommunications, Inc.,
      a
      provider of billings services, to locate and contract with customers to provide
      services.




On
      November 1, 2007 the Company signed an agreement with Billing Concepts, Inc.,
      a
      provider of billings services, to locate and contract with customers to provide
      services. ****




On
      February 5, 2008 the Company signed an agreement with Payment one, Inc., a
      provider of billings services, to locate and contract with customers to provide
      services. ****




**Note
      10 – Consultant and Broker Agreements**




In
      April
      2008, the Company signed five consulting agreements to provide billing and
      customer services. In May 2008 they signed one additional Consulting
      agreement.




Also,
      in
      April 2008, the Company signed five broker agreements to provide marketing
      services; and, in May 2008, the Company signed one additional broker
      agreement.




**Note
      11 – Revolving Line of Credit**




On
      April
      17, 2008, the Company entered into a $500,000 Revolving Line of Credit (“Line of
      Credit”) with the Company’s Chairman, Chief Executive Officer, and principal
      shareholder (“Lender”). The note is payable within 12-months from the date of
      receipt of a demand for payment notice from the Lender. The Line of
      Credit **** bears
      interest at the rate of 12% per annum, computed on a monthly basis. **** At
      June
      30, 2008, the balance due under the terms of the Line of Credit was $100,000.
      On
      July 2008, the Company borrowed an additional $50,000 under the terms of the
      Line of Credit.




**Note
      12 –** **Employee
      Leasing**




In
      June
      2008, the Company entered into an agreement with Oasis Outsourcing to lease
      employees. The initial agreement is for thirty days and renews automatically
      every thirty days until terminated by either party.




11


**ITEM
              2.**
            MANAGEMENT'S
                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND
                RESULTS OF OPERATIONS.





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.





RISK
      FACTORS





***Our
      ability to continue as a going concern is in doubt.***




Our
      auditor has raised a concern regarding our ability to continue as a going
      concern. LGBS is in the development stage and we have generated limited revenues
      since our inception. We continue to incur operating expenses, legal and
      accounting expenses, consulting fees and operating expenses. These factors
      raise
      substantial doubt about our ability to continue as a going concern.




12




We
      have
      recently commenced our consulting business and have no significant operating
      history. Therefore, our business and future prospects are difficult to evaluate.
      You should consider the challenges, risks and uncertainties frequently
      encountered by early-stage companies using new and unproven business models
      in
      rapidly evolving markets. These include significant start-up expenses, obtaining
      and performing contracts with clients, hiring and retaining qualified personnel,
      and establishing a reputation in the industry. There is no assurance we will
      be
      able to enter into substantial arrangements with clients for our consulting
      business or that we can develop contracts on terms that will be favorable to
      us
      or at all. Moreover, even if we enter into any such arrangements, there is
      no
      assurance that such arrangements with clients will be profitable.





***Mr.
      Larry Powalisz, our Chairman, CEO and President is the majority shareholder
      of
      LGBS stock.***




Mr.
      Larry
      Powalisz, as our Chairman, CEO and President makes decisions for LGBS at his
      discretion and not as a result of compromise or vote by members of the board.
      Mr. Powalisz exerts control over the marketing, development and direction that
      the business will take.




***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.





BUSINESS
      OVERVIEW





We
      are a
      development stage company in the process of implementing our business plan.
      Our
      plan of operation for the next twelve months continues to be focused on growing
      revenues and expanding our client base. We will continue marketing our
      consulting services to small and medium sized businesses that are 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 through
      direct mailings and direct website sales. We are actively expanding our client
      base and marketing to additional businesses that we intend to offer our
      consulting services to. We have added new clients, which consist of businesses
      that sell their products through internet marketing, and bill through third
      party billing houses. These businesses offer services that include email and
      identity theft protection.




13




Our
      revenues are growing in conjunction with the expansion of our client base.
      We
      have expanded the suite of client services we offer to include customer specific
      growth marketing strategies directed at a strategically targeted select market
      demographic. We are currently in negotiations with two national and one
      international credit card payment service provider, to secure agent agreements,
      which would expand client payment offerings to include credit card and debit
      card billing methods in addition to LEC (Local Exchange Carrier)
      billing. If and when negotiations are completed we anticipate an
      increase in new customers that will offer credit card billing in addition to
      local exchange carrier billing.




We
      experienced growth throughout the first half of 2008, due to the implementation
      of our business plan. Revenues for the six months ended June 30, 2008 increased
      by approximately $161,000 to approximately $167,000. The increase revenues
      are
      due to the company’s offering of its consulting services and its service support
      platforms. Due to the expenses involved with growing our business, our net
      losses for the six months ended June 30, 2007 increased from approximately
      $350
      to approximately $22,200 for the six months ended June 30, 2008.




As
      we
      continue to implement our business plan, we have anticipated a need to raise
      additional funds to enhance operations and transition the company through an
      expected period of growth. At this time we do not anticipate obtaining outside
      financing to fund operations, or to fund operations through common stock
      offerings, or to augment our working capital through stock
      offerings.




RECENT
      DEVELOPMENTS




We
      continue to utilize a secured revolving line of credit in the amount of $500,000
      to augment our working capital, enhance operations and transition the company
      through the expected period of growth. Larry Powalisz, CEO of Legends Business
      Group, Inc. has made these funds available as part of a related party
      transaction. These loans, when utilized, are repayable 12 months from the date
      of demand for payment at the accrued interest rate of 12% annually. In April
      2008, and July 2008 the company requested $100,000 and $50,000 respectively,
      from the revolving line of credit, to fund expansion. Demand for repayment
      has
      not yet been made.




On
      May
      15, 2008, the company entered into an Employment Agreement with Larry Powalisz,
      Chief Executive Officer and President of the Company. The Agreement evidences
      that Mr. Powalisz has accepted the title and duties that accompany the position
      of President and Chief Executive Officer of the Company. The Agreement shall
      be
      in effect for a period of three years, commencing May 1, 2008 and expiring
      on
      May 1, 2011. During the term of the Agreement, Mr. Powalisz shall be paid at
      the
      annual rate of $130,000. Mr. Powalisz will participate in all general employee
      benefit plans and programs as they are made available.




On
      May
      29, 2008 the company filed a Certificate of Amendment with the State of Nevada,
      which reflected that the Corporation shall be authorized to issue 100,000 (one
      hundred thousand) shares of $0.0001 par value Preferred Stock. On May 29, 2008,
      the company also filed a Certificate of Designation with the State of Nevada.
      The Certificate evidenced that Legends has authorized the establishment of
      Class
      A Preferred Stock in the amount of 100,000 (one hundred thousand) shares. The
      Class A Preferred shares shall be convertible to Common Stock at a ratio of
      1/1,000 (one to one thousand) shares of Common Stock.




Contemporaneously
      with the authorization of the 100,000 (one hundred thousand) shares of Preferred
      Stock, 45,000,000 (forty five million) shares of common stock that were held
      by
      Larry Powalisz, President and CEO, were returned to the treasury of Legends
      Business Group, Inc. In exchange for the return of the 45,000,000 (forty five
      million) shares of Common Stock, the Corporation issued 45,000 (forty five
      thousand) shares of Preferred Stock. This transaction reduced the common stock
      shares outstanding from 77,615,000 (seventy seven million six hundred fifteen
      thousand) shares to 32,615,000 (thirty two million six hundred fifteen thousand)
      shares.




14





LIQUIDITY
      AND CAPITAL RESOURCES





Our
      cash
      balance at June 30, 2008 was approximately $108,300, as compared to
      approximately $500 at June 30, 2007. Our general and administrative expenses
      were approximately $39,000, compared to approximately $6,500 for the same period
      ending June 30, 2007. We expect our general and administrative expenses to
      increase as we continue to execute our business plan over the next 12 months.





We
      anticipate that our operational expenses will grow proportionately to increases
      in our customer base over the next 12 months. The expected increases in
      operational expenses will be directly attributed to marketing expenses
      associated with the development of new client companies, and the implementation
      of our business plan. We do not anticipate the purchase or sales of any
      significant equipment. If and when the anticipated growth occurs, we will hire
      additional employees. We do anticipate changes in our number of employees,
      as
      our business grows.





At
      this
      time we have not entered into any agreements with a sale and marketing entity
      to
      undertake marketing for us; however we are in negotiations to enter into a
      sale
      and marketing agreement. The foregoing represents our best estimate of our
      cash
      needs based on current planning and business conditions. The exact allocation,
      purposes and timing of any expenditure may vary significantly depending upon
      our
      progress with the execution of our business plan.





In
      the
      event we are not successful in reaching our initial revenue targets, additional
      funds may be required, and we may not be able to proceed with our business
      plan
      for the development and marketing of our core services. Should this
      occur, we would likely seek additional financing to support the continued
      operation of our business. We base this expectation, in part, on the fact that
      we may not be able to generate enough gross profit from the sale of our
      consulting and marketing services to cover our operating expenses.





In
      light
      of the business environment in which we operate today, we do anticipate
      incurring operating losses for the short term. However, business environments
      and market conditions can be adversely affected by a multitude of economic
      indicators which remain out of our control.





RESULTS
      OF OPERATIONS




For
      the
      quarter ended June 30, 2008, we generated revenues of approximately $167,000
      and
      incurred a net loss of approximately $22,000.





The
      following table provides selected financial data about our company for the
      quarter ended June 30, 2008.





Balance
                Sheet Data
            
            June
                30, 2008Cash
            
            $
            108,284Total
                assets
            
            $
            112,575Total
                liabilities
            
            $
            124,338Shareholders’
                deficiency
            
            $
            (11,763
            )





For
      the
      complete financial information, please see the enclosed financial statements
      and
      the accompanying notes.




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 of operations, liquidity, capital
      expenditures or capital resources that is material to investors.





15





**ITEM 3.** QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




As
      a
      smaller reporting company, as defined by Rule 229,10(f)(1), Legends Business
      Group, Inc. is not required to provide Quantitative and Qualitative disclosures
      about market risk.





**ITEM
      4** . CONTROLS
      AND PROCEDURES





EVALUATION
      OF DISCLOSURE CONTROLS AND PROCEDURES OVER FINANCIAL REPORTING





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 currently involved in any legal proceedings and we are not aware of any
      pending or potential legal actions.





**ITEM
      1A.**  RISK
      FACTORS





Smaller
      reporting companies are not required to provide the information required by
      this
      item.





**ITEM
      2.** UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS





There
      were no sales of unregistered securities during the period covered by this
      report.





**ITEM
      3.** DEFAULTS
      UPON SENIOR SECURITIES





There
      were no defaults upon senior securities during the period covered by this
      report.





16





**ITEM
      4.** SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS





There
      were no matters submitted to a vote of security holders during the period
      covered by this report.





**ITEM
      5.** OTHER
      INFORMATION





There
      was
      no information required to be disclosed on Form 8-K during the period covered
      by
      this report.




**ITEM
      6.** EXHIBITS





The
      following exhibits are included with this quarterly filing. Those marked with
      an
      asterisk and required to be filed hereunder, are incorporated by reference
      and
      can be found in their entirety in our original Form SB-2 Registration Statement,
      filed under SEC File Number 333-145876, at the SEC website at
      www.sec.gov.




**EXHIBITS
      SCHEDULES**




(a)
            Exhibits




**Incorporated
                by Reference****Exhibit
                Number**
            
            **Exhibit**
              **Description**
            
            **Filed**
              **Herewith**
            
            **Form**
            
            **Period**
              **Ending**
            
            **Exhibit**
              **Number**
            
            **Date
                Filed**3(i)*
            
            
            Articles
                of Incorporation dated March 3, 2006
            
            
            
            
            
            SB
                2/A
            
            
            
            
            
            3(i)
            
            
            6/25/20073(ii)*
            
            
            Bylaws
            
            
            
            
            
            SB
                2/A
            
            
            
            
            
            3(ii)
            
            
            6/25/20074*
            
            
            Specimen
                Stock Certificate
            
            
            
            
            
            SB
                2/A
            
            
            
            
            
            4
            
            
            6/25/200710*
            
            
            Consulting
                Agreement Contract
            
            
            
            
            
            SB
                2/A
            
            
            
            
            
            10
            
            
            6/25/200710*
            
            
            Non-Exclusive
                Agent Agreement
            
            
            
            
            
            W/10QSB
            
            
            9/30/2007
            
            
            10(i)
            
            
            11/13/200710*
            
            
            Employment
                Agreement
            
            
            
            
            
            8K
            
            
            
            
            
            10
            
            
            5/20/20083(i)
            
            
            Amendment
                to Articles of Incorporation dated 5/28/2008
            
            
            X
            
            
            8K
            
            
            
            
            
            3(i)
            
            
            5/29/200831
            
            
            Certification
                of Larry Powalisz Pursuant to Section 302 of Sarbanes Oxley
                Act
            
            
            X
            
            
            
            
            
            
            
            
            31
            
            
            3/26/200832
            
            
            Certification
                of Larry Powalisz Pursuant to Section 906 of Sarbanes Oxley
                Act
            
            
            X
            
            
            
            
            
            
            
            
            32
            
            
            3/26/2008




17




Pursuant
      to the requirements of Section 13 or Section 15(d) of the Securities Exchange
      Act of 1934,
      the
      Registrant has duly caused this report to be signed on its behalf by the
      undersigned, thereunto duly
      authorized, on July 21, 2008.





**LEGENDS
                BUSINESS GROUP, INC.**
              **REGISTRANT**By:
                /s/Larry PowaliszLarry
                PowaliszChief
                Executive Officer andPrincipal
                Accounting Officer




18