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Copyrights protection. I have a S-corp that do seminar business and has the copyrights of some books, CD's etc.

Business 2 views 2 answers
Someone suggested I also open a 2nd company, an AZ LLC, that would keep all my copyrights, mainly to protect them legally. The S-corp would "rent" the copyrights to the LLC each year. I will be the owner of both companies... The LLC main activities would be to rent the copyright. no much more. 1- Is it as simple as it seems or does it need quite a complex construct? 2- How much the S-corp can rent it to the LLC = A- does it depends of its global sale volume. The price of renting is a specific percentage of sales? B- is there a "fair market value" for something like this somewhere? C- Can the LLCC chose, basically any price will work? Thank you for your time,

Attorney Answers

2
Floyd Ivey ·
What is the goal? An "S" corp is just a corporate business form. "S" stands for IRS Chapter S which, unlike Chapter C corporations, is not taxed with all income flowing to the individual shareholder and is taxed as ordinary income to the shareholder. A business model will have to have an easily recognized goal in order to justify formation of two corporations with each having CPA assistance in allocation of income to the individual shareholder - otherwise more complex then with a single "S"corp. Consult with an Intellectual Property attorney, a Tax attorney and a CPA.
0 upvotes
Daniel Levine 3740297.Html ·
The short answer to your question is that, yes, companies create 'holding companies' for various asserts, including intellectual property. However, before doing so you must speak with an intellectual property attorney (and, likely, an accountant/tax attorney) to make sure the goals you wish to obtain will actually be realized.
0 upvotes

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