Multiple businesses under S election

Legal Questions
1

Mark and Mat,

Love the show. I am trying to understand these concepts So as a hypothetical lets say you currently have an LLC and are looking to change to S corp status.

First question I have is:

  1. In order to make s election does the entity have to have been set up all year? Can you set up LLC in February and later that year make s election retroactively for start of year?

2nd question:

Also lets say you have an LLC already taxed as an S Corp, profits are good and you want to open second business ultimately having both your businesses own by an S corp holding company. You want to keep the name of the first business as is. What are the mechanics to accomplish this? Do you revoke the s election on original LLC and set up new s corp to own it? Do you keep first LLC as now the s corp holding company and just change the name of the LLC?

Thank you!

2

Answered on Today’s show (recorded Feb 7 - should be out in a couple days). Thank you so much for the question. Mark and Mat.