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When managing intercompany relationships, it's essential to establish agreements between separate legal entities, even if one fully owns the other. These agreements should outline how money is repaid for legal and tax purposes. This is particularly crucial for multinational operations, as compliance with both U.S. tax laws and the laws of the countries involved must be ensured. Creating intercompany agreements helps manage financial transactions and aligns with regulatory requirements across different jurisdictions, thereby minimizing legal and tax risks.
