Legal Question in Business Law in Florida

Re: S corp law question

Yes (but don't do it). If the sub is not an "ineligible corporation"; the parent S corp holds 100% of the stock; AND a an election is made to treat this as a "Q-SUB" (you must make and file the election) then an S-corp can own another S-corp. However, please consult with a tax attorney before doing this. This is a highly technical area and there can be some nasty tax suprises if done incorrectly and it can be costly, taxwise, to get out of this type of arrangement down the road. There are probably better alternatives to doing this.