FAQs - Pass Through Entity

What is a "related member"? Can you provide an example?

Generally, a “related member” is any person (individual, corporation, partnership, etc.) who directly or indirectly owns at least 20% or more of another entity RC. 5733.042(A)(6). An example would be Fiat and Chrysler since Fiat now owns more than 50% of the stock of Chrysler, the two corporations are related members.