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| Use A Qualified Sub Chapter S Subsidiary to maximize the control of the Qualified Sub Chapter S Subsidiary by the Parent Sub Chapter S Corporation while simplifying tax reporting yet still maintaining a separate legal entity. Where your parent corporation is a Sub Chapter S Corporation, you may then have as many Qualified Sub Chapter S Subsidiaries as you need. The eligible Sub Chapter S Subsidiary as you need. The eligible Sub Chapter S Subsidiary Corporation will be 100 percent owned by the parent Sub Chapter S corporation. What then occurs is that the IRS treats the Qualified Sub Chapter S Subsidiary as a deemed liquidation and the Qualified Sub Chapter S Subsidiary will not be treated as a separate entity for federal tax purposes. This procedure allows you to simplify federal tax reporting because the parent Sub Chapter S Corporation and the Qualified Sub Chapter S Subsidiary will file just one consolidated federal tax return yet you still have the advantage of two separate legal entities for liability and business purposes. | |