Hello. I am working with a client (subsidiary) who is selling finished goods to a parent company. Both are domestic companies and operate solely in the US. The parent company then sells to customers. I am wondering if anyone has suggestions on how to set the transfer price between these entities - i.e. if the price a customer pays for the goods is $10 then should the subsidiary sell the goods to the parent company for $10? Also, if this crosses state lines, does that result in tax issues? What about counties with sales tax? Thank you for your help!
