“B” Reorganization
“B” Reorganization
Type “B” involves the acquisition of stock of one corporation by another, and the target corporation becomes a subsidiary of the acquiring, as a result.
Requirements of “B” Reorganization
1) The acquisition must be one of a series of acquisitions that are part of an overall plan to acquire the requisite control.
2) The plan of acquisition must be carried out in a relatively short period of time such as 12 months.
3) The acquisition must be made solely for voting stock.
Explanation:
* Targets shareholders exchange Target stock solely for Acquiring ‘s voting stock.
*T1 and T2 exchange the C stock received for the T1 and T2 stock held by their shareholders, and then TI and T2 dissolve.
* Acquiring must be in control of Target immediately after the exchange.
*Target becomes Acquiring ‘s subsidiary.
*Targets former shareholders become Acquiring shareholders.
We hope you found this article about “”B” Reorganization” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
The Tax Side of Dealing in Collector Cars
The tax side of dealing in collector cars can be quite interesting. Are you a collector? People collect all kinds of different things, including stamps, art, sports cards, jewelry, coins and cars to name just a few. Speaking of collectors, collectibles can be a great hobby but they can also draw the attention of the…
Prasad Kaipa: Spiritually Connecting with Others
Prasad Kaipa, Spirituality Connecting with Others, interview transcript, by Alan Olsen for The American Dreams Show: Alan Olsen: Can you share a little about your background? Prasad Kaipa: I got a PhD in physics from India, the Indian Institute of Technology in Chennai. And that was in 1981. And I came to University of Utah,…
Karen Schmeiser: Journey of Faith
Karen Schmeiser, Journey of Faith, interview transcript, by Alan Olsen for The American Dreams Show: Alan Olsen: Can you give us a little background on your Journey of Faith you did journeys of faith, how many paintings are inside of that? Karen Schmeiser: Okay, there’s five paintings. And if you want to know a little…
Life Built Upon Pillars – The Venice Life-Structure
Is your life built upon pillars? Will your future wealth be dependent on today’s income? As always, it depends! It depends on so many factors that even tomorrow can be a game changer in either a wealthier direction or into a more uncomfortable financial situation. Therefore, it is important to have a strong structure from…