Separate Entities Need Separate Economics and Records
Evaluate the operating reason and ongoing cost before creating another company.
TOPIC COLLECTION
Multiple entities
A focused reading path from Entity Economics. Start with the question closest to your situation, then review the linked sources and documentation steps.
Draw Two Entity Charts: Legal Ownership and Federal Tax Reporting
Make the structure understandable to lenders, bookkeepers, and the people preparing each return.
Related Companies Owe Each Other Money: Reconcile Both Sides of the Ledger
Identify loans, shared costs, and mistaken payments without letting an intercompany balance become a permanent plug.
An S Corporation Owns a Subsidiary: Evaluate a QSub Election Before Combining Tax Records
A qualifying subsidiary election has its own eligibility, effective date, and deemed transaction analysis.
Related Companies Charge Management Fees: Show the Service and Support the Price
A deductible fee requires more than common ownership and a year-end journal entry moving profit.