Professional publication ‘Lawyer's Newspaper’ published a commentary by Elena Mikhailovskaya, Attorney-at-Law, Counsellor of Criminal Law Practice of Alliance Legal Consulting Group.
The owners of a gym asked a question to the experts of ‘Lawyer's Newspaper’: if a new LLC is registered instead of using the existing one to open a second gym, will the tax authority consider such a scheme as splitting the business?
Case: 'LLC founders ask'
An LLC was registered to open a sports hall and start production of sports equipment. The founders chose the simplified taxation system.
In 2025, they decided to open a second gym in the same city. For this purpose, the owners want to register another LLC to transfer shares in it to investors. In this way, it is planned to link investors only to the hall that they will be involved in its organisation.
However, the founders are afraid that the tax authority will accuse them of splitting the business.
? In what case will a business be recognised as a split business
? How to give the business scheme a legal shape
? How will they be punished for splitting
You can read the full version of the article on the website of the professional publication ‘Advokatelskaya Gazeta’.