Upstreaming royalties
Tuesday/August/19 21:08 Filed in:
corporate strategyJill lives in California and has an active seminar business that teaches investors
strategies on investing in the current real estate foreclosure market.
Jill lives in California and has an active seminar business that teaches investors
strategies on investing in the current real estate foreclosure market. Jill operates
her seminar business through a Nevada LLC foreign filed in California. Jill makes
her money by selling seats to her seminars and then up-selling her attendees
books, tapes and other more advanced seminars.
She has decided to reduce her California tax burden and has formed a Nevada
C-Corporation with an Office Package and Nevada Management Service. Her
Nevada Corporation will own the rights to all of her published books and tapes as
well as the materials that she hands out at every one of her seminars. Her
California LLC will then pay a fee to her NV Corporation for every sale of
published material (books, CD’s, DVD’s, etc.) that she sells. Jill will set up a
predetermined price list that her LLC will have to pay her NV Corp for each
product that she sells. Tags: tax strategy, dual corporation strategy, multi-state taxation, royalties, upstreaming