Kingsport, TN asked in Employment Law, Business Formation and Business Law for Tennessee

Q: Can I have people employed in one S Corp that are meant to work between 2 shared ownership LLCs?

We have 2 LLCs that have partial shared ownership, 2 people are owners in both, 2 more are owners in just one. We are hoping to have an S Corp that is owned by the 2 that own both to employ everyone that currently works in the LLCs to consolidate and simplify things for employees and compliance. How can we do this without being considered as a temporary staffing agency or anything of the sorts?

1 Lawyer Answer
Mr. James Charles Wright
Mr. James Charles Wright
  • Knoxville, TN
  • Licensed in Tennessee

A: You could set up an entity to provide employees to both and then be reimbursed by both entities for the employees. Or the employees could be employed by one entity and when they work for the other - the other entity reimburses the first entity for the time of the employees.

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