tajcc
Dec 27 2006, 06:26 PM
Company A has two owners that own 50% each.
Company B has three owners
The two owners of Company A both own 30% each of Company B.
The third owner owns 40% of Company B, and has no ownership in any other company.
Is this a brother-sister control group?
Thank you.
Pensions in Paradise
Dec 27 2006, 07:43 PM
Are Owners 1, 2 and 3 related in any way? If not, then it is not a controlled group. Common ownership must be at least 80%. Assuming the owners are not related, the common ownership in this situation is 60%.
You also need to determine if this is an affiliated service group. Does either company perform services for the other?