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How to allocate the managment fee for two sister companies

Hello,

We have a management company A which receives payments and the other company B is used to pay bills. Last year, we opened anther company C to pay the bills as well. But we can not just close Company B. So now we use two companies(B and C) to pay bills. How can I allocate the management fee from Company A for B and C? Just based on the % of how much they have paid for Company A?

Thanks

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

The simple answer is yes, the more complex has to do with taxes and transfer pricing, if any.

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