Can a Corporation Own an LLC
With the many businesses of today who has already become corporations, they aspire to continuously make their business grow. If you are one of the businessmen of this generation who wants to know if you corporation could still own a Limited Liability Corporation or LLC, this article could answer your question.
By knowing what to do, you will be able to manage your business more and target your long-term goals.
Since the rules and regulations about businesses in every state widely vary, you need to know first the rules that your state have set for a business like yours. By knowing that, you will have the right direction to take when it comes to the formation and ownership of your business. To make sure that you will always be on the right track, you also need to know the set of rules that IRS also known as Internal Revenue service has in store for you.
Can a Corporation Own an LLC: Know the Answer
Before you plan to own a Limited Liability Corporation, you need to get familiarized first of what it is and what it will make out of your business. According to definition, Limited Liability Corporation is a kind of business structure that is allowed by the state statute. This is considered to be one of the most popular business forms due to the fact that this offers the business owners to have their limited personal liability for the actions and debts of the LLC. The following are two of the other features that a Limited Liability Corporation has in store for you: pass-through taxation benefits and management flexibility provision.
If you have already become an owner of an LLC, you will already be called a member. Since most of the states don’t impose restriction on the ownership, anyone can become members such as corporations, individuals, foreign entities and other LLCs as well. So, this settles it. You can own an LLC even if you are a corporation. With this, you can already reach all your goals without compromising anything. This can pave the way for you to keep your business growing and improving as the years go by.
There is also no maximum member number so you don’t have anything to worry about. If there is only one owner, that is also permitted by the state and referred as a “single member”.
But there are also other business types which are not allowed to be LLC such as insurance companies and banks. If you would like to know more information regarding this matter, you need to check the requirements of the state a regulations of the federal tax as well. By doing that, you will also be able to know the special rules applied to the foreign Limited Liability Corporations.
Now that you have already learned that your corporation can own an LLC, you can already make your business grow bigger.
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