Holding entity tax structure

by a searcher from Northeastern University

10 months ago

My partner and I are going to form a joint entity that will be acquiring an S-Corp through asset sale.

For tax planning, is it okay to form a holding LLC for the S-Corp that will be acquired or should we form an S-Corp that will be holding the assets of another S-Corp?

Thanks.

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6 comments

searcher from Northeastern University

Hi Chris, the acquisition will be through asset sale. Would that be okay if we were to form a joint LLC to acquire the S-Corp?

10 months ago | like reply | 0 likes

intermediary from University of Alabama - Tuscaloosa

My suggestions as a non lawyer, but a strategic manager, form a holding LLC for the S-Corp because it provides you more flexibility with your business activities, and tax deferrances.

10 months ago | like reply | 1 like

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