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Corp ownership of LLC

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G

Glen Harmon

Guest
Can a sub S corporation be a member, own an interest in an LLC

If yes, what are the TAX consquences?

By pass through to the Sub S do we avoid the Dual Self employment Tax?
 


L

loku

Guest
In most states, an s corporation may be a member of a limited liability company.

In most instances, a limited liability company is taxed as a partnership. So is an s corporation. The income of the llc is passed through the llc to the s corporation, where it is passed through to the shareholders of the s corporation. There is no duel self employment tax.
 

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