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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.

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