Fundraising
Multi-entity structure
A multi-entity structure is an arrangement in which a founder operates through more than one company, commonly a US entity alongside a home-country operating company. Each entity files separately, and transactions between them are subject to transfer pricing rules.
In plain terms: Running two or more connected companies in different countries.
Why it matters
Often arrived at by accident rather than design, when a founder with a local company adds a US entity for payments. Documenting what each entity does and what they charge each other early is much cheaper than reconstructing it under audit.
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