Is it LEGAL???

[themindofmoney]

Is it legal for a corporation i own to purchase goods or services from another corporation I also own.
Example
Can my web design firm charge all the rest of my companies for web design services.??
or
Can my Computer Repair Company Charge a monthly fee to all the rest of my companies??

Thanks in Advance for your responses!!

[akula]

yea that's fine..the companies are separate legal entities, therefore there's offer and acceptance, therefore there is an enforceable contract and transactions are lawful.
...there are some transactions which are prohibited against related entities, but that's not an issue for you

[Machiavelli]

I cannot give you an answer to that question, however it does seem like there would be some unethical "possibly" illegal tax deductions in that case...

Call an attorney.

[xclusive]

It is legal.The companies are separate legal entities.That means that the company can sue and be sued.As long as the companies are registered for tax purposes and keep a proper accounts record, there shouldnt be a problem.