Can an S Corporation
own stock in another Corporation?
corporation may own stock in another corporation without loss of S
corporation status. The other corporation will be a C corporation
because it has a corporate shareholder. If the S corporation owns all
of the sock of another corporation, the S corporation may elect to
the subsidiary as a qualified subchapter S subsidiary *QSub) in which
case the QSub is deemed to have liquidated into its parent and becomes