jetfaninmn
Feb 28 2007, 09:47 AM
I am again working on an LLC.
The first LLC (I'll call it LLC A) has 3 owners. Each owns 33 1/3% of the Business.
This LLC is a 60% owner of another LLC (I'll Call it LLC B). A different unrelated LLC owns the other 40%.
Is LLC B part of a control group with LLC A? Are the rules different for the LLCs than for corporations?
Thanks!!!
austin3515
Feb 28 2007, 11:52 AM
Not in my opinion. When one LLC owns another, we're usually talking about a parent-subsidiary controlled group, and the cut-off for control is 80%.
But, for the brother-sister controlled group (i.e., 5 or fewer common owners control 80%, and have identical interests totalling 50%) is not met either. The only common owners are the owners of LLC A, and again, they do not own at least 80% of BOTH companies (i.e., because they own less than 80% of B.