Legal Question in Business Law in New Jersey

Yes.

To paraphrase H.L. Mencken, --- For every question, there is an answer that is simple, neat and wrong. --- However, there is nothing inherently illegal about the passage of money between affiliated entities. Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

Please visit my website! www.bgartenberg.com or call me if you�d like to learn more about me or my practice. Thank you.

IRS CIRCULAR 230 DISCLOSURE: As required by U.S. Treasury Regulations governing tax practice, you are hereby advised that written advice contained herein (if any) was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

With best wishes,

Barry F. Gartenberg, Esq.

I agree, and depending upon type of entities used, net income should be the same to the partners. Tax avoidance is legal, tax evasion is not, This is a response to an Internet question and the reply is provided for information purposes only. The reply is not intended to be legal advice or as creating an attorney-client relationship.