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
How to allocate the managment fee for two sister companies
Answers
The simple answer is yes, the more complex has to do with taxes and transfer pricing, if any.