Structures

[TAX]

(1) Can a scorp be a member of LLC?

(2) Can LLC a share holder of SCORP?

(3) Can Scorp be a shareholder of another SCorp?

[sea-tax]

(1) Can a scorp be a member of LLC?

(2) Can LLC a share holder of SCORP?

(3) Can Scorp be a shareholder of another SCorp?

1) Not sure
2) Generally no, but some single member llc's may qualify
3) No Corporations can not own stock in s-corp

This is how I uderstand it and hopefully someone else will chime in and give their two cents.

[Roland Slugg]

Yes ... maybe ... no

Dear TAX

(1) Yes.
(2) Depends. It's all right if the LLC is a "disregarded entity" ... i.e. single member LLC that has not elected to be treated as a corporation.
(3) No. An S corp's shareholders must all be either individuals, estates, or certain trusts.

[sea-tax]

Dear TAX

(1) Yes.
(2) Depends. It's all right if the LLC is a "disregarded entity" ... i.e. single member LLC that has not elected to be treated as a corporation.
(3) No. An S corp's shareholders must all be either individuals, estates, or certain trusts.

Well see two out of three ain't bad. Maybe I do know this business structure stuff.

[TAX]

Thank you all

[outwest]

One slight clarification..

rarely seen in the wild but....

An S corporation can own the stock of a qualified Subchapter S subsidiary (QSub), which, at the S corporation's election, is basically treated as a division of the parent S corporation. Code Section 1361(b)(3)(A)(i). In order for a corporation to constitute a QSub, three requirements must be met:

(1) The subsidiary must be a domestic corporation that would otherwise qualify as an S corporation;

(2) the parent S corporation must own 100 percent of the stock of the subsidiary; and

(3) the parent must make an election to treat the subsidiary as a QSub, as discussed in Code Section 1361(b)(3)(B).

Doug

[Rocky]

I found this helpful so thought I'd share...

Comparing S Corporations with Limited Liability Companies

http://www.taxprophet.com/newsletters/0610spnl.html