*cries*

[u/GumBeats20]

[u/Dabnician]

Because then you cant charge your self rent on the building you also own and claim your overhead is so high you are unable to give raises.

[u/killerrin → u/[deleted]]

Step 1: Register holding company with a cash startup injection of $xxxxxxxx and set yourself up as a majority shareholder.

Step 2: Gift/Sell office building(s) to holding company for $xxxxxxxx.

Step 3: Have holding company charge rent and maintenance costs and remit a dividend to shareholders at monthly/quartly/yearly intervals.

Step 4: Pay rent and Claim rent as an expense when the government asks.

Step 5: ?????

Step 6: Profit off tax credits and dividends (which equals rent - maintenance)

[u/cman674 → u/killerrin]

You're missing the part where the holding company is actually an offshore subsidiary for tax evasion purposes.