S CORP OWNED BY ANOTHER S CORP

[gk]

Hi,

I need a help. A new client he already have  TWO S corp ( A & B) and started two more S corps in 2023 under existing S corps.  One under A and another under B. So when i complete the K-1 work sheet i have to add existing S corp Name and select O for entity type right?. Also can i add his name as an officer or add existing entity name. Kindly advise. 

GK 

[dascpa]

An S corp is not an eligible stockholder in another S corp.  There can by a QSUB but look up who are eligible S corp shareholders.

[sjrcpa]

To be a QSUB a separate timely election is needed.

[cdeems]

I have an S-Corp client that opened up an LLC with two other corps as owners and they elected S-Corp Status. No clue who advised them or why they did this, but do you know what the next steps are to get this resolved?