Shell PC Inside an LLC - Duplications

[OHRoadwarrior]

You keep talking, but now you are claiming what you claimed did not happen initially, happens and now they just require audits. You really need to get your stories straight.

 

[marshmallowmoon]

Not a Subsidiary

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

No, the P.C. is independent. The principal is a contractor outside of his employment with two other businesses. He is not a contractor with the LLC. The guy doesn't have his own office space and he's using the LLC space and employee's to run his personal concerns. He is salaried with a percentage based profit share. I guess I wasn't aware that this sort of thing could be done. Seems like it would be a conflict of interest Don't you think that the LLC (the owner, board, and executives) would see that as diverting company resources? Seems to me like that would be a form of theft since the LLC is unaware of it. I just wanted to know how the IRS would view it. Would they take it as being an issue between the two companies and unconcerned that the overhead isn't really his overhead? Just seems wrong to me.

 

[LdiJ]

No, the P.C. is independent. The principal is a contractor outside of his employment with two other businesses. He is not a contractor with the LLC. The guy doesn't have his own office space and he's using the LLC space and employee's to run his personal concerns. He is salaried with a percentage based profit share. I guess I wasn't aware that this sort of thing could be done. Seems like it would be a conflict of interest Don't you think that the LLC (the owner, board, and executives) would see that as diverting company resources? Seems to me like that would be a form of theft since the LLC is unaware of it. I just wanted to know how the IRS would view it. Would they take it as being an issue between the two companies and unconcerned that the overhead isn't really his overhead? Just seems wrong to me.

Once again, there are many scenarios under which this is possible and valid. What makes you think that the LLC owners are not aware of it?

 

[OHRoadwarrior]

As long as the taxes are being paid on the double wages, the IRS is not going to really have an issue. The problem appears to be the time fraud committed againg the LLC and its owner, board and execs. They need to be notified.

No, the P.C. is independent. The principal is a contractor outside of his employment with two other businesses. He is not a contractor with the LLC. The guy doesn't have his own office space and he's using the LLC space and employee's to run his personal concerns. He is salaried with a percentage based profit share. I guess I wasn't aware that this sort of thing could be done. Seems like it would be a conflict of interest Don't you think that the LLC (the owner, board, and executives) would see that as diverting company resources? Seems to me like that would be a form of theft since the LLC is unaware of it. I just wanted to know how the IRS would view it. Would they take it as being an issue between the two companies and unconcerned that the overhead isn't really his overhead? Just seems wrong to me.

 

[LdiJ]

As long as the taxes are being paid on the double wages, the IRS is not going to really have an issue. The problem appears to be the time fraud committed againg the LLC and its owner, board and execs. They need to be notified.

That again, is assuming that they do not already know about it and are not providing facilities for some form of compensation.

 

[davew128]

You keep talking, but now you are claiming what you claimed did not happen initially, happens and now they just require audits. You really need to get your stories straight.

You brought up the issue of audits. Yes, banks lending money to entities typically require at least a review and oftentimes an audit. You DO know I work in this field, right???

 

[OHRoadwarrior]

You brought up the issue of audits. Yes, banks lending money to entities typically require at least a review and oftentimes an audit. You DO know I work in this field, right???

You do realize you keep changing your story right? First you said loans would never be made to an LLC owned by another company. Then you backed off and implied they would but the would require independent audits. If you are so confused over the issue, I suggest you take up another line of work. We should start calling you wishy washy. I think we have about exhausted the thread hijack you started. You have already admitted I was correct by changing your story. There is not a need to continue playing word games while you keep changing your story, while ignoring your initial claim, which is what the discussion was about. I'm sure you will likely wish to have the last word, protesting you really did not say any of that, so go ahead and attempt to salvage your honor. I won't bother to keep responding on the issue.

 

[davew128]

You do realize you keep changing your story right? First you said loans would never be made to an LLC owned by another company.

Read my FULL comments there Corky. I said something would be required, and thats in addition to the audit.

As Alice Cooper once said, school's out. You flunked.