Legal Question in Business Law in Texas

Re: S Corp and LLC's

An S-corporation can be a member in an LLC.

The tax ramifications should be discussed with a CPA knowledgeable in taxation matters. LLC income flows to the members as if the LLC was a partnership, while the income the S-corp makes flows to its members as if it was a partnership. There may be an Alternative Minimum Tax bite, depending upon the activities of the S-Corp. The field of taxation starts to get murky when looking into the future, and is well outside the realm of business law.