Creating QSUB

Technical topics regarding tax preparation.
#1
Posts:
137
Joined:
14-May-2014 2:56pm
Location:
Wisconsin
Any disadvantages to the following?
Sole shareholder currently has three separate S-corporations. All 100% owned. Wants to create a parent company to transfer all ownership of the 3 companies to, and then become sole shareholder of new parent company.

Main reason for this is to make transferring ownership to kids easier, and being able to file one tax return.
 

#2
Posts:
6043
Joined:
22-Apr-2014 3:06pm
Location:
WA State
Makes sense to me.
Do you need to create a fourth company? Is there one of the three that could serve as the parent?
~Captcook
 

#3
sjrcpa  
Posts:
6477
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
Some states don't recognize QSUBs and would require a separate state return.
 


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