IRS Compliance & PenaltiesAnswered

My US LLC does routine production for my foreign company — is cost-plus or CPM the right method?

S5
santiago_5d27new member
May 29, 2026 1,430 views 1 answer
transfer-pricingcost-plus-methodcomparable-profits-methodcontract-manufacturerbest-method-rule

Flip side of the importer question: here my US LLC actually makes/assembles goods for my foreign affiliate on a routine basis. It's contract-manufacturing style work, not designing or owning anything special. Should I price the intercompany charge using the cost-plus method or CPM, and what tips it one way or the other?

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