Accountant Forums


Reply
Thread Tools

Can an S-Corp own an S-Corp?

 
 
Trip Ives
Guest
Posts: n/a
Thanked:
 
      02-10-2004, 08:26 PM
I have a quick question here. Can an S-Corp own another
S-Corp (part or whole)?

Why do I ask? I own one S-Corp and a business colleague
owns another. Together, we want to own a third, held 50/50
between our seperate S-Corps. If this won't work, can we
own an LLC together insead?

Thanks for the feedback!

Trip

<< ------------------------------------------------->>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org >>
<< ------------------------------------------------->>
 
Reply With Quote
 
 
 
 
Christopher Green
Guest
Posts: n/a
Thanked:
 
      02-12-2004, 07:15 AM
(E-Mail Removed) (Trip Ives) wrote:

> I have a quick question here. Can an S-Corp own another
> S-Corp (part or whole)?


Quick answer. No.

There are some ways to arrange for an ESOP to hold shares of
an S corp. There are some ways to create a subsidiary of an
S corp. But an S corp. cannot own shares of another S corp.

--
Chris Green

<< ------------------------------------------------->>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org >>
<< ------------------------------------------------->>
 
Reply With Quote
 
 
 
 
Kerry Nichols
Guest
Posts: n/a
Thanked:
 
      02-12-2004, 08:31 AM
(E-Mail Removed) (Trip Ives) wrote:

> I have a quick question here. Can an S-Corp own another
> S-Corp (part or whole)?
>
> Why do I ask? I own one S-Corp and a business colleague
> owns another. Together, we want to own a third, held 50/50
> between our seperate S-Corps. If this won't work, can we
> own an LLC together insead?


An S Corp can't partially own another S Corp.

An S Corp can own a partial interest in a C Corp, LLC or
partnership.

<< ------------------------------------------------->>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org >>
<< ------------------------------------------------->>
 
Reply With Quote
 
JMc
Guest
Posts: n/a
Thanked:
 
      02-12-2004, 09:48 AM
"Trip Ives" <(E-Mail Removed)> wrote:

> I have a quick question here. Can an S-Corp own another
> S-Corp (part or whole)?
>
> Why do I ask? I own one S-Corp and a business colleague
> owns another. Together, we want to own a third, held 50/50
> between our seperate S-Corps. If this won't work, can we
> own an LLC together insead?


An S-Corp cannot own another S-Corp. However, an S-Corp can
own 100% of a corporation and elect to treat the corporation
as a qualified sub-S subsidiary (QSub). Owning a QSub would
be like owning an S-Corp. However, a QSub must be 100%
owned by one S-Corp. In your case, this wont work.

The LLC (taxed as a partnership) would be the way to go.

<< ------------------------------------------------->>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org >>
<< ------------------------------------------------->>
 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Must a Judge Sign his own Orders and attend his own Hearings samsloan Accounting 3 01-14-2010 11:30 PM
Company repurchasing its own share out of its own capital Duncan Accounting 3 04-09-2008 05:19 AM
Now you can start your own home based business for just $5 monimbd@gmail.com Accounting 0 10-08-2006 04:07 AM
Is WFH office and computer a qualifed deduction if we don't own our own business? Andy Tax 0 03-01-2004 08:25 PM
Is WFH office and computer a qualifed deduction if I don't own my own biz? Andy Tax 0 03-01-2004 07:27 PM


All times are GMT. The time now is 04:44 PM.
Posts in this forum do not constitute the advice of AccountantForums.com or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.