How do you save Taxes by opening a sister concern company?

Answer 1

Tax saving is is extremely extensive topic to write about it.

First off all it should be determinate about how large business we are talking about.

For example if we are talking about small business we can incorporate an LLC. Limited Liability Company is automatically recognized by IRS as a "pass-through" tax entity. On the other hand, profits and losses of a corporation are reported on a corporation tax return, at a specific corporate tax rates.

Limited Liability Company is automatically recognized by IRS as a "pass-through" tax entity, however members can elect LLC to be taxed as corporation.

Both Pass-Through Taxation and corporate taxation have its pros and cons. If you have two entities, one taxed as "Pass-Through" and one taxed as a company, you can speculate to find the best option to pay less taxes as possible. Just think about it...

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