opening a restaurant with 2 different companies

[mrofouga1]

Virgina


team 1 (Bob, Jack, Jim, Matt) = ABC inc

team 2 (Jason, Alex) = XY LLC

=
NEW company (ABC Inc and XY LLC starting a new company and naming it bbd) = BBD inc

Team 1 and 2 want to join forces and open up a restaurant. We want to form a new company where both teams own 50% of the company. Should we be an scorp or a LLC? Can two companies own a company? We want to be an S corp to take advantages of taxes

 

[Antigone*]

Virgina


team 1 (Bob, Jack, Jim, Matt) = ABC inc

team 2 (Jason, Alex) = XY LLC

=
NEW company (ABC Inc and XY LLC starting a new company and naming it bbd) = BBD inc

Team 1 and 2 want to join forces and open up a restaurant. We want to form a new company where both teams own 50% of the company. Should we be an scorp or a LLC? Can two companies own a company? We want to be an S corp to take advantages of taxes

Unless you are a single-member LLC, you can not be formed as an S-Corp. If you want your endeavor to be set up as an S-Corp, you would all have to own as individuals.

I suggest that since you have a group of people deciding to go into business you shouldn't invest much time and effort until you have research all your options with an attorney and a CPA

 

[mrofouga1]

What if we all formed LLCs


team 1 (Bob, Jack, Jim, Matt) = ABC LLC

team 2 (Jason, Alex) = XY LLC

=
NEW company (ABC LLC and XY LLC starting a new company and naming it bbd) = BBD LLC

Would that work?

 

[Zigner]

What if we all formed LLCs


team 1 (Bob, Jack, Jim, Matt) = ABC LLC

team 2 (Jason, Alex) = XY LLC

=
NEW company (ABC LLC and XY LLC starting a new company and naming it bbd) = BBD LLC

Would that work?

An internet message board is not the place for you. You need to speak to an accountant and a business attorney.

 

[Antigone*]

What if we all formed LLCs


team 1 (Bob, Jack, Jim, Matt) = ABC LLC

team 2 (Jason, Alex) = XY LLC

=
NEW company (ABC LLC and XY LLC starting a new company and naming it bbd) = BBD LLC

Would that work?

For simplicity's sake let me just put it this way. An LLC cannot own an S-Corp unless it is a single-member LLC. Remember an S-Corp is a pass-through entity for tax purposes.

You really need need the help of an attorney and a CPA.

Tigi out

 

[tranquility]

What if we all formed LLCs


team 1 (Bob, Jack, Jim, Matt) = ABC LLC

team 2 (Jason, Alex) = XY LLC

=
NEW company (ABC LLC and XY LLC starting a new company and naming it bbd) = BBD LLC

Would that work?

google:
s corp allowed shareholders
choose what makes sense.

By the way, what do you mean take advantage of taxes. It seems like you will all be doing work, right?

 

[OHRoadwarrior]

Wait until this arrangement turns into a comparison of johnsons.