Can my sole-proprietorship cleaning business provide service to and invoice/bill my single-member LLC unrelated business for payment?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can my sole-proprietorship cleaning business provide service to and invoice/bill my single-member LLC unrelated business for payment?
I have a house cleaning business and would like to have my crews clean the facility for another unrelated business that I own as a single-member LLC in Tennessee. Seeing as I own 100 interest in both businesses, I don’t know how that would be looked at.
Asked on September 30, 2017 under Business Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
There is no reason why one business you own cannot perform work for, bill, and be paid by another entity you own, and in fact larger companies often do this, with one unit or division (e.g. IT, HR, or payroll/accounting) providing services for, being paid by, and booking revenue from other units (e.g. client-facing units that bring in revenue from outside and wholly unrelated parties). Just keep all the records straight and honest, as if dealing with unrelated parties, and there should be no problem.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.