What guidelines does the IRS follow that impose certain ownership and minimum capital requirements to avoid "dummy" corporations to act as sole corporate general partners.

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The IRS follows safe harbor rules that require a corporation to have a minimum ownership interest of 5% and a minimum capital interest of 1% to avoid being treated as a "dummy" corporation. These guidelines help ensure that the corporation is a legitimate partner and not just providing a facade for another party to control the partnership.

What Guidelines Does the IRS Follow That Impose Certain Ownership