Simple English definitions for legal terms
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A controlled group is when two or more companies have most of their stock owned by five or fewer people. This means they have to follow special tax rules. It's like a big family of companies that have to work together.
A controlled group is a term used in tax law to describe two or more corporations whose stock is mostly owned by five or fewer people. These corporations are subject to special rules for calculating their tax liability. Examples of controlled groups include parent-subsidiary or brother-sister groups.
These examples illustrate how a controlled group is formed when a small group of people own a significant portion of the stock in multiple corporations.