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Can a scorp be a member of llc classified as scorp for tax…

Hello, can a scorp...

Hello, can a scorp be a member of llc classified as scorp for tax purposes?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Well my scorp is a member of an llc being tax as partnership. We like to be elected as scorp for filing and continue operating as llc.. Will that effect ownership requirements due to scorp can't own another scorp?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

No thank you

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Answered in 9 minutes by:
3/23/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,009
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. …. My name’s Lane,

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

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So sorry, no - S Corporations are legal entities that opt for special tax treatment by the IRS. There are a number of restrictions to receive this beneficial treatment, including that an S Corp's shares cannot be owned by another corporation, including other S Corps.

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One of the particular basics of S-COrps is that they are owned by individuals.

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While S Corps can be shareholders in C Corporations, they cannot have an ownership position in another S Corp. Again, because S Corp stock must be owned by individuals.

...

As an aside this is why S Corp stock can't be owned by C Corps, either, nor can it be owned by LLCs or partnerships.

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,009
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Customer reply replied 1 month ago
which election is the best way to save on taxes if elected as c corp or partnership?
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Lane
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