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Level 1
March 5, 2020

QSubs Election

  • March 5, 2020
  • 1 reply
  • 6 views

In order to make a QSub Election, I want to confirm what means qualified domestic corporation.

Does qualified domestic corporation means qualified domestic C Corporation only or can it be a qualified S Corporation as well?

Can I create two companies, one as LLC Holding and another as LLC Subsidiary (100% owned by the Holding LLC), and then request S Corp Status for both LLCs and also make a QSub Election for the Subsidiary?

Who must sign the QSub Election Form owned 100% by the Holding Company?

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1 reply

Level 4
March 5, 2020

Hi,

1) I believe a qsub can have c corps and s corps as its subs.

2) I can't answer that (re:: LLCs).

3) The election is from Form 8869. Here's what the instructions read...Form 8869 must be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or any other corporate officer (such as tax officer) authorized to sign the parent’s S corporation return.

Thanks,

Mike D'Avolio