1)benefit of a parent/subsidiary company relationships.If a corporation has the majority shares of another, or the corporation has control over another, that corporation is deemed the parent company. The other corporation then serves as the subsidiary company. For tax purposes, the income or loss of the subsidiary company is combined with the parent(consolidated return) which may lead to a higher taxation due to the graduated tax scale of the corporation, on the other hand, should there be a loss, the parent benefits from it from lower tax liability. had they not consolidate or no parent subsidiary relationship, loss of the subsidiary will be treated as a net operating loss to be applied against future income which would not benefit either corporations.
One employee works for two employers-Employee may be receive wages from both employers like somebody working two jobs. Wages aqnd salaries depends on duties, responsibilities, ability of the employee. If corporations are related somehow, it is also possible for a reimbursement which may be a unique situation unless the employee is the only shareholder of the company being reimbursed. The unemployment tax does have a minimum efffect as far as costs is concerned and not even worth the discussion
Philippine meeting-yes it can be done and if you take me with, you will double your deduction which is better for the both of us
I have a few questions : What's the benefits of having a parent company? If you have a person that works for two of your businessess in a regional type position, how can you split the salary? Should you pay this person from both companies or one company reimburses the other? What's the tax liabilities and IDES obli...gations? Lastly, I'm still seeking more info. on a 503C...... Oh, and I see that you have an office in the Philippines, is it a write off for me to go have a meeting there from time to time ??!!
