Upstreaming PR
Tuesday/August/19 21:09 Filed in:
corporate strategyJohn runs a busy executive recruiting firm in San Diego and uses two Public
Relations Firms extensively to get exposure around San Diego.
John runs a busy executive recruiting firm in San Diego and uses two Public
Relations Firms extensively to get exposure around San Diego. John business
was growing at an extraordinary rate and John was looking for an edge to reduce
his tax burden. John decided to look into the advantages of setting up a second
business entity in Nevada, to do business with his California S-Corporation.
John formed a Nevada C-Corporation with an office package and Nevada
Management Service for financial privacy. John then had his Nevada
Corporation contract with his outside PR Firms for all of his PR needs. For
managing these efforts his CA Corp paid his NV Corp a fee in excess of the
actual fees charged by the contracted PR Firms. John was then able to draw
additional fess out of California and into Tax Free Nevada.
Tags: tax strategy, public relations, upstreaming, multi-state taxation, dual corporation strategy