I originally had one business (Business A) that I owned 100%. Recently I started a second business (Business B) that I own 100% and is not a subsidiary/parent relationship. The Business B sells products to Business A. My question is do I just records the transaction like any other business transaction i.e. revenue/AR business (Business B) 1 and Expense/AP (Business A) for business 2 or do I need to “do due to/due from” since I’m the owner of both companies.
USA Related Party Question
- Thread starter hmmm1160
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I don't think it is necessary unless required by any law or regulation in state or federal level.
+1 to record them as any other business transaction.
+1 to record them as any other business transaction.
How can you make proper management decisions? How can you figure the net tax effects? How can you avoid stirring the chances of an audit? How can you develop an exit strategy?
Just a few questions in support of maintaining arms length transactions.
Just a few questions in support of maintaining arms length transactions.