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Affiliated service group in this situation?


Guest LTurner
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Guest LTurner

mom and dad have a C Corp, only employees are mom, dad, and kids. SEP plan in place and being maximized.

kids have an S Corp (which was created to service the C Corp) and all the employees. kids (owners) do not take salary from C Corp

the C Corp and the S Corp were initially one company now carved into two

S Corp has a SIMPLE

I believe this is an affiliated service group based on my research, as one corp exists only to service the other

Should these two corps have one plan? rather than a SEP for the family and a SIMPLE for the employees

I feel there is a problem here.... what are the problems and where do we go from here?

please advise

:confused:

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Guest LTurner

oops - in previous post I said kids (owners) do not take salary from C corp - that was wrong, they do take salary from C Corp but NOT from the S Corp that they own.

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