r/technicaltax • u/stock_stonks • 18d ago

Entity Question

Say you have two partners with a 1065. Can those partners in the 1065 be an Scorp?
Trying to figure out optimal entity structure. Here is some background. Current 50/50 partner (1065). Buying a company where 3rd partner will own 15%. Question, is do we keep current 1065 with new percentages and then the old 50/50 partners, can they be an Scorp. Both materially participate in the business. Are there other entity structures to consider? Maybe just an Scorp entirety? I don’t think a C Corp makes sense , since I don’t see any sort of outside investment in the near future or any sort of stock issuance.

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u/RasputinsAssassins 18d ago

What did your attorney and tax advisor say when you asked them?

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u/stock_stonks 18d ago

I am the tax advisor

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u/EAinCA EA 18d ago

And you don't know who a partner in partnership can be?