Which would be best? I have a 50% shareholder in a income producing S-Corp. who wants to sell is shares directly to either a trust, which he owns, or to another S-Corp that is 96% owned by that same trust. This second S-Corp losses money every year. Which would be more beneficial.
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FYI your posts should be titled with the subject of your question, not John FarrarBelieve nothing you have not personally researched and verified. -
You really need to post more information with your question. It is impossible to answer based on the limited information provided.Comment
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You do not state what type of S-Corp and/or trust you are referring to regarding this transaction. Most corporations and partnerships are prohibited from owning stock in an S-Corp. And it is my understanding most trusts cannot own such stock unless they are QSST's or ESBT's. You need to investigate eligible shareholders in an S-Corp. There are many reliable sources.Comment
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