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    1 Reply Latest reply on May 18, 2012 11:00 AM by Don Barrick

    Series LLC Vs. S-corp with LLC flow through subsidiaries

    freesetech Newbie


      I'm still trying to decide how to best structure my business. I've talked to a few business owners and a few attorney freinds but still don't have a clear idea of what would be best. What I'm still trying to understand is the taxation and finnancial reporting laws. The overall structure would be a "Parent" company with 3 "sister" companies; consumer services, consulting services, and distribution/retail. The idea is to help mitigate risks and control profits/losses between company divisions. If one part of operations gets sued or see's a major market reduction, the remainder of operations will not be affected by those losses. I have a good understanding of business and know what forms are required, but still have much to learn. Any advice or suggestions would be greatly appreciated.

      Thank You,

      Tim G.


      State of operations: Illinois

      Availible venture capital: $5,000

      First-year GVS Projections: $50,000-$65,000

      Number of owners: 2

      Number of employee's: 1

      Operations will be in-home, retail, average consumer, and small-to-medium sized businesses.


      My question is with the first year projections, what would have the best tax benifits/options.


      1. An S-corp parent company with 3-LLC subsidiaries

      2. A Series LLC with a LLC parent company and 3-LLC subsidiaries

      3. An S-corp with 3-C-corp subsidiaries

      4. Something I haven't thought of.

        • Re: Series LLC Vs. S-corp with LLC flow through subsidiaries
          Don Barrick Wayfarer

          With all due respect to all readers and writers - including me!!! - this is the kind of question you want to ask your own Accountant.  A CPA is going to be able to give you the information based on your current tax situation, your future needs long and short term objectives, and local considerations.  I believe your choice is certainly not a C-corp, but I am not a CPA, and I don't even play one on TV!


          Good luck.