Pension Rights Center
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Plan Compliance Analyst (administrator) RPA
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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Advanced Plan Designs, LLC
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Definiti
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Quantech Pensions LLC
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Small NY Actuarial TPA Firm
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Howard Simon & Associates
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Southern Pension Services
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Retirement Plan Relationship Manager Prosperity Advisors, LLC
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Southern Pension Services
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Carpenter Morse Group
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Question 161: Our client is a limited liability company ("LLC") owned by 2 corporations, A and B; each owns roughly 50% of the LLC. Corporation A is owned by approximately 10 individuals. No five or fewer individuals own 80% or more of Corporation A. In determining if the LLC is part of a controlled group with another corporation, do we consider that Corporation A is not owned by at least 5 or fewer persons so the LLC is not part of a controlled group because they fail the 80% test? Or do we only consider that the LLC is owned over 80% by only 2 corporations? In other words, do we look through the entities and compare the individual ownership and deem that they own the LLC? |
Answer: Yes and no. It depends on which common control test is involved. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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