Can an S Corp Own a C Corp
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| Can a "C" Corporation own and "Due south" Corporation? I would like to know, if a "C" Corporation tin own an "S" Corporation? | ||||
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| Hello Sean: Think of a corporation every bit a taxpayer, who has the same rights you exercise as a taxpayer, except that a corporation tin't vote, and it doesn't die. Anything YOU can own, a corporation can own. excon | ||||
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| Consult with appropriate tax professionals whenever getting into something significant. Under Internal Revenue Lawmaking Section 1361(b)(i), only certain shareholders can be part of an S corporation (generally just resident individuals and a couple kinds of trusts) and C corporations are certainly non part of the mix. If you fix this upwardly, your Due south corporation would immediately turn into a C corporation equally its ballot to exist taxed as an S corporation would be taken away. | ||||
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| Tax CPA is right, a C Corp. cannot own an S Corp. Notwithstanding, an Due south Corp can ain a C Corp. | ||||
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| azlaw97 is exacly 100% Incorrect!! Exactly opposite. | ||||
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| azlaw97 is exacly 100% WRONG!! Exactly opposite. Wrong. Azlaw97 isright. For purposes of this subchapter, the term �modest business corporation� ways a domestic corporation which is not an ineligible corporation and which does not� www.law.cornell.edu/uscode/26/13http://61(c)(vi).html Translation: An "Southward corporation" may not have some other corporation as a shareholder. A corporation is not an "individual". | ||||
Originally Posted by djerry4231 
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| Give thanks you for proving my betoken... A C corp can own a subchapter S or LLC... non the other fashion effectually. | ||||
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| Thank you lot for proving my betoken.....A C corp tin own a subchapter S or LLC....not the other way around. Huh? I didn't prove your point. The "owned" subchapter S corporation must be endemic past an individual, notpast another corporation, subchapter C,D, E, F, or whatever. Certain, the C could ain the South, but in that case the S would not authorize to be an South. | ||||
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| Huh? I didn't prove your point. The "owned" subchapter South corporation must be owned by an individual. Nonpast another corporation, subchapter C,D, Due east, F, or whatsoever. Ok... I run across, my apologies. How about an LLC then? The reason for my inquiry was that I'm forming a property corporation and I wanted to know what construction the sub companies should or needed to exist. I responded previously every bit to how I understood corporation ownership to exist. Thank you in advance Jerry | ||||
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| A LLC is not a "person", an "estate, a trust... or an system described [ in sect. 501(c)(3); i.e. a qualifying non-profit]. So no. | ||||
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