Multiple Entity Planning is a strategy that identifies and separates different revenue streams and business activities within one company with the goal of creating separate viable companies. By doing so, the business owner is able to reduce risk and tax liability. Cost savings derived from reduced tax costs and liability insurance fees can have significant impact on the organization’s bottom line profits. The IRS is very strict on Multiple Entity Planning, so it is critical to make sure all rules pertaining to controlled groups and/or affiliated service groups are followed carefully.