Hello, I am not sure if this is even "doable" but here is what I want to do. I want a master company, under that master company will be three "sub" companies. I want the sub companies to essentially be my service providers, web design, etc... These sub companies will offer their services to the public, but the reason they are being created is for tax purposes. It seems to me and I think this may be a shell, but hopefully not illegal, that if the design company charges the master company $2,500 for a site that cost it $1,500 to make (simple writeup) than the master company gets to use that as a write off for marketing or business expense, and since the web design company stays under a certain amount and it would be easy to show a loss every year, it seems this would be the best way to go. Anyone have any experience doing something like this? Also the above is an example Im not doing it just like that, but I wanted to put it all under the same corporate entity instead of doing it by creating three different LLC's which may be the way I will go. Thanks James
An LLC can't be the master company. You will need to set up a corporation for that. Also, contact a tax attorney.
Lots of these things are possible but carry a high price in overhead. Each of those entities will have to keep it's own set of books and file it's own tax return. Unless you are making serious money I'm not sure it will be worth it. I don't think the average tax attorny will be terribly helpful in evaluating your choices. Some of the seminar speakers (Jack Miller comes to mind) are much more deeply into this stuff.