Q: I have a holding company (S corp) and three separate LLC's. I'd like to make the LLC's subsidiaries of the S corp. How?
A: You need a stock purchase agreement by which the S Corp will purchase the LLCs. There are certain legal consequences of this, such as the new entity assuming the liabilities of the constituent entities. You can also structure this as a stock exchange or traditional merger pursuant to the Business Corporation Law: the method of consolidation hinges on business and tax considerations.
A:
Why do you want to do this? It seems, to me, unusual.
Jack
A: If these are wholly owned by you, you should be able to just change the membership agreement. If you are doing this to avoid creditors, it could be a fraudulent conveyance. Also, depending on how you carry the books, there may be tax consequences.
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