Shell PC Inside an LLC - Duplications

[marshmallowmoon]

Employees work for LLC, clock in and out for LLC, and receive pay for those hours from LLC. P.C. private corporation principal pays employees a separate salary for performing as personal assistants to manage family matters, personal expenses, banking, etc. There is no differentiation of time spent working for the P.C.; no clocking out from the LLC to set apart the pay. There is no contractual agreement with the LLC to allow a shared salary. All overhead is covered by the LLC. P.C. reports overhead expenses not incurred by P.C., but paid by LLC.

Is that allowable as far as tax law is concerned?

 

[OHRoadwarrior]

The inter-relationship matters. For example if one is a subsidiary of the other, the point is moot unless fraud is being committed.

 

[davew128]

The inter-relationship matters. For example if one is a subsidiary of the other, the point is moot unless fraud is being committed.

If payroll is being reported as required, I am unsure what fraud you think there would/could be.

 

[AnonUserName]

Employees work for LLC, clock in and out for LLC, and receive pay for those hours from LLC. P.C. private corporation principal pays employees a separate salary for performing as personal assistants to manage family matters, personal expenses, banking, etc. There is no differentiation of time spent working for the P.C.; no clocking out from the LLC to set apart the pay. There is no contractual agreement with the LLC to allow a shared salary. All overhead is covered by the LLC. P.C. reports overhead expenses not incurred by P.C., but paid by LLC.

Is that allowable as far as tax law is concerned?

Is this homework as well?

https://forum.freeadvice.com/us-supreme-court-constitution-25/wire-tapping-599797.html#post3204339

 

[OHRoadwarrior]

If payroll is being reported as required, I am unsure what fraud you think there would/could be.

I was thinking along the lines of running up debt in a sub, then defaulting.

 

[davew128]

I was thinking along the lines of running up debt in a sub, then defaulting.

You don't really know much about how the lending world works, do you?

 

[OHRoadwarrior]

You don't really know much about how the lending world works, do you?

I know how the real world works. I have seen musical asset games being played.

 

[LdiJ]

Employees work for LLC, clock in and out for LLC, and receive pay for those hours from LLC. P.C. private corporation principal pays employees a separate salary for performing as personal assistants to manage family matters, personal expenses, banking, etc. There is no differentiation of time spent working for the P.C.; no clocking out from the LLC to set apart the pay. There is no contractual agreement with the LLC to allow a shared salary. All overhead is covered by the LLC. P.C. reports overhead expenses not incurred by P.C., but paid by LLC.

Is that allowable as far as tax law is concerned?

Quite possibly. If they have calculated an average percentage of time that the employees are utilized for the PC then the separate salary could legitimately be paid based on that percentage. It would not require a differentiation of time. They could have calculated the percentage a long time ago. The overhead would be similar, and could be accounted for in any number of ways.

 

[davew128]

I know how the real world works.

MTv doesn't count.

I have seen musical asset games being played.

Really. Then when a bank asks the LLC who the owners are, and they are told it is a corporation, what do you think they will do? Here's a hint: Show you the door.

 

[OHRoadwarrior]

MTv doesn't count.

Really. Then when a bank asks the LLC who the owners are, and they are told it is a corporation, what do you think they will do? Here's a hint: Show you the door.

You have this documented where, aside from your own head? In fact, both companies have the potential to be sued. LLC laws are state specific, so there is not a fixed answer to whether it is possible.

 

[davew128]

You have this documented where, aside from your own head? In fact, both companies have the potential to be sued. LLC laws are state specific, so there is not a fixed answer to whether it is possible.

Theoretically its possible I could get hit and killed by a toilet seat that falls out of an airliner.

Back in the real world, lenders don't make loans to limited liability entities without something else, and I'll let you blow some smoke trying to figure out what that is.

 

[OHRoadwarrior]

Assets, which can be fraudulently presented or misdirected, the same way corporations do.

Enron is probably the biggest example. USA Dry Van Logistics is a recent one.

 

[davew128]

Assets, which can be fraudulently presented or misdirected, the same way corporations do.

Enron is probably the biggest example. USA Dry Van Logistics is a recent one.

Nope. Try again. The assets of an entity only matter if they are COLLATERAL.

Actually this is a double whammy on you because Enron was something COMPLETELY DIFFERENT.

 

[OHRoadwarrior]

Nope. Try again. The assets of an entity only matter if they are COLLATERAL.

Actually this is a double whammy on you because Enron was something COMPLETELY DIFFERENT.

You can debate the truth all you want. Which is the simple fact your position is guidance and not fact. These types of loans and inter-vendor credit lines occur on a routine basis. They tend to be riskier with non publicly traded companies due to the lack of independent auditor oversight. If they were not made routinely, business would not function as it does. I'm done debating with someone who wants to make an unsubstantiated claim with no defense.

 

[davew128]

You can debate the truth all you want.

We aren't debating. I'm schooling you.

These types of loans and inter-vendor credit lines occur on a routine basis. They tend to be riskier with non publicly traded companies due to the lack of independent auditor oversight.

Which is why banks require....independent audits.

If they were not made routinely, business would not function as it does. I'm done debating with someone who wants to make an unsubstantiated claim with no defense.

I agree. You're done.