Overview of Parent Company Structure
- An LLC can serve as a parent company.
- Every state has its own LLC law.
- What do you call companies under a parent company?
- Definition of an LLC.
Benefits and Drawbacks of LLC Parent Company
- Benefits and drawbacks of the parent company structure.
- Reasons behind setting up a parent company.
Choice Between LLC and Corporation
- Considerations when choosing between an LLC and a corporation for a parent company.
- Steps to form a parent corporation.
- Considerations for non-US citizens/residents.
Operating Details of a Parent LLC
- An LLC parent company as an umbrella company for subsidiaries.
- Structuring a parent LLC.
- Difference between holding and operating companies.
The solution to this dilemma is to form an LLC under state law and then elect to have it taxed as an S-corporation instead of a disregarded entity for federal income tax purposes. By doing so, you get the benefits of both an LLC and an S-corporation. In other words, you get the simplicity of an LLC with the tax advantages of an S-corporation.