USA S-Corp Election for LLC owned by LLC

Joined
Apr 10, 2018
Messages
6
Reaction score
0
Country
United States
Working with a client who has an LLC (structured like a private equity fund) that he is using to purchase several small businesses. The fund LLC recently purchased an existing LLC and will be the only shareholder.

Is the target company eligible for S-Corp treatment? I assumed it was, but found some rulings by the IRS that seem to contradict. Specifically, they seem to indicate that an LLC can not elect S-Corp tax treatment if it is owned by another LLC.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top