Is it Tax fraud if there is 1 company working under 2 names?

Question

Half the employees are under one name and the other half are under another name. One building, one business, but they go by 2 names. Someone told me they do that for tax reasons. Is that some kind of fraud?

Answer 1

As long as both of their names are registered and, all of the income revenue is reported properly to the IRS there is no problem simply because they have 2 names, but 1 buisiness.

Answer 2

Back in 1947 I did bookkeeping for a company I will call Carter Co.
There were 3 companies operating under one name.Carter Co. the main company, Carter Sales to keep track of the sales people and Carter Contractors the company that sold the equipment. This was not done for tax purposes, it was done to keep better track of what went on with the money. Many years later I worked for a company which was privately owned and the wife was paid a salary, had the usual deductions but never worked a day in her life.

Answer 3

Tax fraud would require that you make overt and illegal actions to conceal revenue. I go to many places daily that have multiple business's under one roof. Sometimes with the same ownership. Some folks find it easier to keep track of the P & L that way when doing multiple types of work or services. They could even share cost of an employee.

Answer 4

Really no tax benefit of doing that. Depending on how many empolyees there are, it could more likely be a strategy to minimize legal liability to the company, or avoid OSHA requirements or workmans comp. The last two could be a problem for them if this is the case.

Answer 5

I would not think so. The company may not be ethical but the company really does know how to work the system. I am in the assumption that 2 people who are 'close' own each one of the 2 companies as well.