Sweet and regular.
I am assuming each company is in a different business??? Again, seek counsel but the following usually applies:
Form a corporation or LLC. An LLC might be simpler for this purpose. Have the LLC acquire both of the businesses in exchange for Membership Units (LLC's version of stock) which they will issue to you. Each company can be run independently and books kept seperate. However, at the end of the year, the LLC will consolidate their books and file one single tax return with the IRS. Since an LLC is a flow-through entity, all tax liability flows to the Members perportionately. Losses in one business will automatically offset gains in another. Instead of getting a 1099 or W2, you will get a K1 which you will file with your personal return. The K1 will show your allocation (100%) of the gains and losses. A K1 is usually treated as "passive income". This way, losses from a business can be used to offset other personal losses that may not be ordinariliy deductable. The LLC never writes a check to the IRS. You write a check only if you show adjusted gross income.
This is one creative way to avoid IRS noses when consecutively operating a business with ongoing losses which they may otherwise consider a "hobby". They only ever see one consolidated P&L.
To minimize tax liability it is generally best to minimize income. Naturally I would advise visiting an accountant since many factors are involved, but as a general rule, it is best to structure your business to show the least amount of profit possible (legally of course). If the business posting a loss cannot generate a tax deduction in some manner, it does seem fair that it would be best to combine the two so that the loss at least offsets some income elsewhere (hence minimizing your tax liability). I am assuming of course that you own 100% and that there are no conflicting interests involved....
Commercial concrete companies make many millions/year.
Generally speaking, internal controls within a business is often the function of the organization's auditing department. With that said, it's quite common to find the auditing and accounting departments closely tied or working together to ensure that all external and internal matters mostly concerning funds and how they are used to be proper and also lawful. A company of any size will also have an outside accounting firm annually examine the books, and policies and procedures of the organization. The three mentioned organizations provide senior management with information concerning all of the business activities mentioned in the preceding paragraph.
Without the information these organizations provide, top management cannot be sure that all of the company's policies and procedures are in compliance with both internal and external laws and regulations.
The advantages are clear that all three types of "controls" two being internal, allow top management to be confident about its internal and external obligations.
Some more sophisticated organizations apply a fourth method of control. Usually a department often called "internal staffing" or by another name that many companies consider vital.
Top and middle management become aware of any internal financial or external governmental problems from the accounting and auditing departments. However, the so-called "internal staffing" department does not rely on what a company can afford in terms of personnel based on profits or losses. The "internal affairs" or "internal staffing" insure that there is the correct amount of employees, at any given internal level within the company. They measure how many employees are required to have the company's profits maximized and losses limited. For example, a commercial bank in the USA may engage in in the trading of currencies or debt instruments as part of their business needs. The internal affairs department may determine that based on the bank's trading activities, more traders at a particular level are needed. They would perhaps measure trade volume with pre-set trading personnel models in order to make sure there were enough traders to perform proper trading. Of course, the reverse may be true as well. The internal affairs department may come to the conclusion that the bank has too many traders.
This type of internal control does not depend on the auditing or accounting departments. Nor information from outside accounting firms.
If your in business it is best to lease and get the deduction. If not, buy and make it last.
Another Answer: Because there are advantages and disadvantages to both leasing and buying, you need to know initial costs and future dollar value in both. The ROI (Return On Investment) will differ depending on incomes and expenses over time and you need to compare the two side by side