USA LLC owned by S-Corp

Jun 17, 2018
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United States
Have a situation where there is a long standing S-Corp owned 100% by an individual. New business opportunity has arisen, so individual wants to use new LLC with a different name for this activity.

  1. It is my understanding that a S-Corp can own (be a member) of an LLC. If the S-Corp is the sole 100% owner, I believe the LLC is a disregarded SMLLC? As such, does the SMLLC use the S-Corp's EIN and not even apply or need one of its own? Will a bank allow a bank account for the SMLLC that is using the S-Corp EIN?
  2. Is this any advantages to the S-Corp owning the SMLLC - or should the individual just make himself the sole owner of the new LLC (i guess it could still be a SMLLC?) other than the need for two tax returns? At some point there likley will be health insurance premiums.
  3. The S-Corp currently gets a small royalty check and is a very minority member of another LLC that owns some commercail realestate. At a later date, could the S-Corp transfer ownership of these two things to the new LLC - since its all the same owner and all income and expenses end up on the same individual tax return?
Any thoughts appreciatted.


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