Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Subsidiaries of S-Corp

Asked by: aubrey maloney - 11 January, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 I want to start a S-Corp but I want to operate other businesses under that one S-Corp. The other businesses under the S-Corp would be like subsidiaries. How would I go about doing that?
Answered by: Alec Green - 19 January, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/2.jpg-d85fc946de818bb769fdd6ce8cd95478 Aubrey,

I understand from your question that you are referring to setting up a parent-child relationship between the holding S-Corp and the companies owned by it (those can be other S-Corporations, also called Qualified Subchapter S Subsidiaries, or just single member LLCs).

Keep in mind that those will be separate entities, each with its own bank accounts and its own liability, however being owned by the parent entity they would be considered as disregarded entities from tax perspective. I would recommend you to consult a CPA who will be able to better explain how the taxation of such structure is managed, as well as what formes are required to be filed in order to establish it properly.

Other than those tax related formalities the entities would be formed the usual way with the Secretary of State (or other responsible authority, depending on the state).

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment