If you are involved in multiple business structures, you may have wondered, can a corporation own a corporation? The answer to this commonly asked question is yes. Some entrepreneurs set up multiple corporations in order to streamline their taxes, benefit shareholders and improve the company finances. Here are some details to help you learn more about this type of practice.
One common business structure that allows you to own more than one organization is an S Corporation. This type of business model allows you to limit your personal liability for business affairs, get corporate tax benefits and acquire up to 100 shareholders. But, can an S Corporation own an LLC? Yes. An S Corporation can own up to 100 percent of an LLC. Using this S Corporation form can guide you through the process of setting up this structure.
Another type of business structure that allows you to set up a complex network of ventures is the C Corporation. The C Corporation is the default business structure type for most new ventures. C Corporations, however, don’t have as many limitations as an S Corporation does. For example, with a C Corporation, you can have more than 100 shareholders in your company. But, can S Corp own C Corp structures? Yes. Just as an S Corporation gives you flexibility if you want to take advantage of tax benefits, you can use an S Corporation to acquire 80% or more of a C Corporation. Filing for a C Corp business structure can be a simple and painless process.
If you want to start your own business and aren’t sure which structure would be right for you, check out the survey here from GovDocFiling. You’ll be asked some simple questions about the nature of your business and your intentions for the future. Then, you’ll get a recommendation about what would be most beneficial to your goals.