3 Scorps sell assets and give LLC 51%

[liltax]

There is 3 scorps where there was two owners that had 50-50 ownership. They sold there assets to an LLC and gave the LLC 51% ownership during mid 2008. So, what happens to the filing of tax returns? Is it 3 returns filed for each individual company or now is it the LLC who files the return?

These are theatres in Georgia. Assets sold to LLC for the 3 theatres for 1.75 mil.

[liltax]

Please help

Can someone pleae tell me if I need to do each individual return or once assets were sold LLC and they gained 51% control it became one entity??

[WhiteOleander]

I think that they have terminated their S-Corp status. Check the Small Business Tax Book. Page SB3-3. It states that ineligible shareholders are corps, partnerships and LLC's(if the LLC has elected to be taxed as a corp.

Not sure if that's what you are asking or not.

[Lion]

Assets or Shares?

Did the S-corps sell their assets to the LLC? Or, did shareholders sell their stock to the LLC? Or, some other combination entirely? An LLC is not a tax entity but a state/legal entity, so as has been asked, how is the LLC taxed and can it own shares in these S-corps?