Controlled Group?

[DP]

I have a medical practice with 2 shareholders - each 50%.

Both of these shareholders each own 25% of another medical practice.

Are there any issues with a controlled group here? I want to say no ... but need a second opinion.

[K2retire]

I'd be more concerned about an affiliated service group.

[DP]

This is new to me. How can I determine if they have an affiliated service group? Is there a hard and fast rule? Thanks.

[ETA Consulting LLC]

This is new to me. How can I determine if they have an affiliated service group? Is there a hard and fast rule? Thanks.

There's never a hard-fast rule. You explained the 2 individuals own 100% of one company and 50% of another company. Who owns the other 50%? Are they related, in any way, to any of the owners? Is there a 'right to first refusal' or some other restriction on the sale of that 50% in favor of the any owner?

This is just for the Controlled Group determination. Affiliated Service Groups have a different standard that involve performances of services for the other company or their clients.

Good Luck!