It’s absurdly simple!
Have you ever placed your Photoshop image into Illustrator after having cut out the background, and it appears with a solid white background? Sure, you can set the transparency to Multiply but then the entire image becomes transparent. There is no trick to it, my dears. You simply have to save your Photoshop files as .psd. Voila! No more white background; your cut-out object is floating beautifully in space, ready to place in your layout. Get Rid of the White Background in Photoshop to Illustrator!