We (an S Corp) acquired a business in an all asset sale and set up an LLC along with another partner company (C Corp) with S owing 55% and C Corp owing 45% ownership. We would like to know what will be best tax structure and does this makes the new entity subsidiary of S Corp?
Impossible to answer the tax structure question without knowing a lot more about the companies and their owners.
The new LLC would be partly owned by both the S corp and the C corp and for control purposes, a subsidiary of the S corp.
Hire a business lawyer and a CPA to properly structure, operate, and pay tax on these entities' income.
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