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Parent / Subsidiary structure advice (LLC or S-corp)

    • 2 posts
    June 2, 2009 5:20 AM EDT
    We structured ourselves a bit differently, but it has worked well.  Having all assets in an LLC means that you can be very flexible about taking investment through the LLC (can be from companies, non-US citizens, etc).  The disadvantage is that you have to offer membership, not stock.  We have an S-Corp that is owned and controlled by the founders.  This allows us to issue stock in any way and any amount we want (as long as we don`t violate rules and lose S-Corp status).  The S-Corp is the Manager of the LLC and all assets and IP are held by the LLC.  The S-Corp holds a controlling interest in the LLC.  Thus, the founders continue to manage the company, accrue S-Corp / LLC benefits, yet we can flexibly raise funds by offering Membership in the LLC.  Not sure if this is what you are looking for, but an S-Corp managing an LLC has worked very well for us so far.
    • 2 posts
    May 14, 2009 3:11 AM EDT
    Hi fellow start up nation members.. I am new here. I work in online advertising and marketing.

    I have a recently established an LLC which generates revenue from online sources.

    This LLC was set up by me and a partner. We would like to amend the LLC so that is owned 50/50 by two different companies (holding?).   All profits from this 1st LLC would flow into the 2 owning companies in a 50/50 manner.

    I would like your advice as to whether the 2 separate holding companies should be an LLC or an S-Corp or ?.  What are the advantages / disadvantages of having one vs the other?

    (this post was edited down to keep it simpler)
    waltmiami5/14/2009 11:25 AM
    • 2 posts
    May 14, 2009 6:32 AM EDT
    Thanks Lisa, i`ll have a look at your site..  I am hoping to get a few responses from members to get their perspectives as well.