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Controlled corporate groups

Controlled groups of corporations basically fall into two classifications: parent-subsidiary controlled groups and brother-sister controlled groups. A parent-subsidiary controlled group is one which one or more chains or corporations are connected through stock ownership with a common parent corporation. At least 80 percent of the voting power or stock value of each corporation in the group other than the parent is owned by one or more corporations in the group, and the common parent owns at least 80 percent of the voting power or stock value of one of the other corporations in the group. A brother-sister controlled group is a controlled group in which at least 80 percent of the voting power or stock value of two or more corporations is owned by the same five or fewer persons (individuals, estates, or trusts) and these persons own more than 50 percent of the voting power or stock value of each corporation.