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suppose I own two corporations...one is incorporated in delaware and another one incorporated in cayman islands

suppose the website is currently owned by the cayman islands corporation and the website is generating revenue...

suppose I want to transfer ownership of the site from the cayman islands corporation to the delaware corporation...and since I'm transferring ownership between corporations I own, the delaware corporation does not pay anything to the cayman islands corporation for the transfer of ownership...

is this:

1) legal? if it's legal is there a specific term for such transfer

2) going to be taxed by the US govt?

also same questions except that this time it's transfer from the delaware corporation to the cayman islands corporation

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Are these corporations (eg., Inc.) or LLC's? – user6603 May 4 '11 at 13:04
well the delaware one is probably just LLC....the cayman Islands one is whatever the Cayman Island's equivalent of an LLC is – kamikaze_pilot May 4 '11 at 15:11

1 Answer

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1) In both cases a gift would not be legal - there has to be a monetary value to the transaction. Assets cannot just appear / disappear on a balance sheet.

2) The transaction may be taxed. But for that you need to consult a tax specialist in the country that is receiving the asset and for the country that receives the payment. This would be classed as an asset sale. Unless you did this as a business, in which case the website would be considered a product.

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