S ‘I must report the tax, such as a corporation or a separate subsidiary start? Thank you.

Trouble created by CTJ: If I start a subsidiary under an S Corp, will I have to file taxes as one entity or as separate ones? Thanks.?

The subsidiary will serve a different market than the “mother” company, but we would like to keep the accounting as straightforward as possible. If we spin off the subsidiary in the future, what are our tax implications. Thanks again.

This really is top tips on If I start a subsidiary under an S Corp, will I have to file taxes as one entity or as separate ones? Thanks.? that you may might want to resolve situations on their very own. Confidently this helps in many ways: and help everything considerably better. Wishing top tips on If I start a subsidiary under an S Corp, will I have to file taxes as one entity or as separate ones? Thanks.? are likely to be a simple solution sooner or later.

Solution:

Answer by spicertax

The stock spinoff will be nontaxable. The sub will need a separate tax number so the IRS will be expecting a separate Form 1120-S. All income of sub will be taxed to mother company. That is simple.

Answer by Khemosabi’s Ranger

It depends. Subsidiary means that it is owned by the parent, in this case, the S corporation. It can be wholly owned, or predominantly owned. It need not necessarily be an S corporation. It could be a C corporation, in which case, it is a taxPAYER as well as a tax reporting entity. Or, it could be another S corporation, or an LLC. If the subsidiary is a C corporation, then it would be a separate taxpayer and you would have to file separately.

The tax ramifications of a spin-off depend so much on the nature of the subsidiary, the question is too diverse for a reasonable length answer here.

Answer by CPAKeith

You will have to separate the accounting and taxes of the subsidiary since the sub will be a C corp and taxed differently. I would question whether a subsidiary is really necessary. Could you achieve a “spin-off” via specific contracts rather than a separate legal entity?

“Prior to 1997, an S corporations could not have subsidiaries, and could not be a member of an affiliated group of corporations. As of 1997, an S corporation can hold qualifying wholly owned subsidiaries and can own 80 percent or more of the stock of a C corporation. The C corporation subsidiary can elect to join in the filing of a consolidated return with its affiliated C corporations, but the S corporation cannot join in the election.”

Answer by martyb

I believe that for c corps the subsidiary has to be at least 80% owned to file as one. Please research for S corps.

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Real Mom Tabitha and her Son, sitting for the Camera and telling us all about their Incestual relationship. Than they showing it, while they still got taped …

Mother and child

Look with Mother and child

Back to Cairo – Dec 27, 2008 – 15

This was a common scene on the street: a mother walking along, with a young child in tow.

Note: this photo was published in a Feb 4, 2009 United Nations Prevention Web blog article entitled "Egypt: Preparing for disasters, media and industry also have roles to play." It was also published in a Nov 21, 2011 "PC Welt blog titled Mit der Mutter unterwegs ."

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After nearly two weeks of visiting pyramids, tombs, temples, and museums — as well as cruising from Aswan to Luxor and Qena — we returned to Cairo for a final two days of our trip. We visited an old mosque and church, and then most of our group went on to visit a museum … but I was "museumed out" at this point, so walked back to our bus, found a stone bench recessed back against a wall, and watched an assortment of policemen and merchants and ordinary Cairo citizens walking past me (generally without any awareness that I was there at all) on a small, quiet street. I also took a couple shots of the small shops and cafes on the street…

S ‘I must report the tax, such as a corporation or a separate subsidiary start? Thank you.