Why Intercompany Agreements Matter More Than You Think
As businesses expand, they often establish multiple entities to manage operations, finances, or intellectual property. In San Francisco’s fast-paced business environment, it’s common to see startups with Delaware parent companies, California subsidiaries, and offshore development hubs. But when these entities interact, informal arrangements can quickly turn into major legal issues.
That’s where intercompany agreements come into play.
Connecting Legal and Operational Strategy
Intercompany agreements are the contracts that define the relationships between related business entities. They dictate how assets are shared, services are delivered, costs are allocated, and revenue flows between companies under common control.
Without these agreements in place, businesses risk regulatory scrutiny, tax complications, and internal disputes. At Primum Law Group, we work with growing companies in San Francisco to draft clear and compliant intercompany agreements that align with business strategy.
Avoiding Risks Across Entities
When one entity licenses IP to another or provides staffing and resources, the terms must be documented—not just for internal clarity, but to meet tax and legal requirements. Transfer pricing rules, especially for companies with international structures, can trigger audits if agreements are missing or inadequate.
Startups and mid-sized businesses often overlook this step in the rush to scale. But once investors, acquirers, or tax authorities take a closer look, gaps in documentation can create friction. Primum Law Group helps businesses address these issues before they become liabilities.
Making the Structure Work for the Business
A well-crafted intercompany agreement does more than satisfy auditors—it supports how your business actually functions. Whether you’re allocating R&D costs, assigning IP rights, or managing profit-sharing across entities, the right legal agreements bring order to operational complexity.
Our role at Primum Law Group is to ensure that these internal relationships are not only clear but also built to evolve as your structure changes. Whether you’re preparing for a financing round or structuring your first international subsidiary, we help ensure your agreements reflect your real-world business goals.
In a city where growth often happens fast, legal clarity between entities isn’t optional—it’s essential.