> Can you explain this differently? I don't understand how you would launder profits through yourself (or why you're laundering them at all-tax reasons?).

Same as licensing your name to "another" company that's actually your company, for (coincidentally I'm sure!) all of their profit, in order to shift money around.

Have umbrella company. Put your tech folks either directly in the umbrella company or in some child company. Make your other child companies (or even ones you don't have directly related to the umbrella corp) "pay" the one with the tech folks for their dev work, some arbitrary amount of money (however much you want to move). Now the umbrella company or tech child company has all the profit from your other companies, which you've done for tax or liability reasons or whatever. Mission accomplished. Whether actual tech work was done may or may not matter, depending on whether you were also trying to accomplish actual work at the same time, or just shifting money.

i guess outsourcing the actual work for very cheap and charging the end client a much higher amount. very common.

Basicslly how all profitable businesses work more or less. A fun game to play in order to understand the business is to figure out what they actually sell. For example a software business might sell developer's time.

> A fun game to play in order to understand the business is to figure out what they actually sell.

I think it's more fun to understand how much they can charge for what they sell.

That doesn't sound like laundering at all - isn't that just good business?

I would never call it laundering. Just what the previous poster labelled it.