Legal Question in Business Law in Virginia

Can you legally pay for services from another business if you own both?
I have an established business. But I have recently set up another business that is on the web that is advertising based. Can I buy advertisements on my web business from my established business since I own both? The businesses are two separate entities. I want to do this so that I can promote my store front business on my separate business website along with other paid advertisers. Another reason is that I have not generated any revenue for my web business and I established the LLC and have been working on this site for a couple of years with losses due to hiring of developers and my accountant says that I need to have some revenue this year, so IRS will not audit me.

Asked on 5/23/07, 3:45 am

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Can you legally pay for services from another business if you own both?

What would be the reason(s) that you could not(purchase this advertising)?

Answered on 5/23/07, 9:26 am

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