Controlled Group/Common Ownership

[MarZDoates]

I have a question about common ownership: I think I know the answer, but would like confirmation:

Corporation "B" is owned by: 50% Corporation A and 50% "Individual

Guy"

Corporation "B" owns 100% of Corporation "C" and Corporation "D"

Corporation "D" owns 50% of Corporation "E".

I believe all of the above are grouped together and have one retirement plan.

Corporation "C" is selling off part of their business new a new LLC which will be owned 50% by "Individual Guy" and 50% by three other unrelated people.

Question is: Can the new LLC set up their own 401(k) Plan, even though "Individual Guy" owns part of Corporation "B" I would think that the ownership is not common with Corporation "B".

I hate this stuff! Any input is greatly appreciated. Thanks.