What is a QSub?

John, a white man with dark brown hair, wears a pale blue shirt, lime green and blue tie, and black suit. By John G. Hodnette

As discussed in my February 2025 blog post Eligible S Corporation Shareholders, corporations generally cannot own the stock of S corporations, even if the owner is itself an S corporation. However, where an S corporation is the 100% owner of another corporation, it can make an election for the subsidiary to be a qualified subchapter S subsidiary (QSub).

Section 1361(b)(3)(A) provides a corporation that is a QSub is not treated as a separate corporation and “all assets, liabilities, and items of income, deduction, and credit of a [QSub] shall be treated as assets, liabilities, and such items (as the case may be) of the S corporation.” That means the S corporation owner of the QSub reports all of the QSubs’s activities on the S corporation parent’s Form 1120S, treating the QSub as a disregarded entity for income tax purposes.

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“Yellowstone” Meets North Carolina: Condemnation Law on the Ranch and the Road

By Kayla BrittKayla, a white woman with auburn hair, wears a paisley colored burgundy top and burgundy blazer.

Television dramas rarely get the law exactly right, but sometimes they spark conversations that resonate with those of us in practice. The series Yellowstone explores struggles over landownership, government power, and private rights in a way that reaches beyond Montana. While the show takes liberties, its themes echo real issues in North Carolina condemnation law.

In Yellowstone, the Dutton family resists outside efforts to take or control their ranch. Condemnation, or eminent domain, is portrayed as a weapon of powerful interests. The narrative is heightened for television, but the underlying legal principle is familiar. The government may acquire private property for public use if just compensation is provided.

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Don’t Miss This Fall’s Intensive CLE in Asheville

Amy, a white woman with shoulder-length blond hair, wears a black blouse and khaki jacket.

By Amy Britt

 Asheville in Peak Season

Who doesn’t want to escape to the mountains in October?

With breathtaking views, vibrant fall colors, and a meeting and social venue at one of Asheville’s premier hotels, you’ll experience a CLE designed to inspire.

🔥 Inside the Intensive CLE

This year’s Intensive CLE, co-planned by Lori Vitale, Kimberly Bryan, and Shelby Benton, promises to be one of the most interactive and dynamic programs we’ve ever offered. The CLE will take place Thursday through Friday, October 23-24, 2025.

We’re bringing together cutting-edge topics (for example, hear from NIL attorneys on child moneymakers and explore how name, image, likeness, and brand impact family law cases), nationally recognized expert speakers, and the kind of candid discussions that only happen when the cameras are off.

And by choosing to be in Asheville this fall, we’re not just investing in our professional growth—we’re also showing up for a community that still needs our support.

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2025 EENR Section Sustainability Contest Winner Selected

By Maria Savasta-KennedyMaria, a white woman with brown hair, wears a white shirt and black blazer.

Each year, the NCBA Environment, Energy and Natural Resources Section Council hosts an essay contest for high school students across the state centered on the theme of sustainability. The winner of the contest receives a $500 cash prize and the chance to be published on NCBarBlog. This year’s contest focused on the challenges of recycling and reducing our use of plastics. We sent invitations to all high schools in the state inviting students to respond to the following prompt:

Does recycling consumer plastic products and packaging reduce plastic waste in the environment? Why or why not? What are the challenges posed by our widespread use of plastic?  How can we address those challenges? For example, do other countries or states offer a model for North Carolina? Are there emerging technologies that replace or reduce plastic waste?

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A 2025 Overview of Bar Organizations and Dues Requirements

By Kayla BrittKayla, a white woman with auburn hair, wears a paisley colored burgundy top and burgundy blazer.

You are excited to graduate, to pass the bar, and to be sworn in as a licensed attorney in North Carolina, but did you know there are requirements other than passing the bar and getting sworn in?

Although this information is readily available on a variety of websites, finding the answers to questions may be overwhelming for a newly licensed attorney.

Below is a quick preview of organizations you will be required or recommended to join and information on dues that must be paid.

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Federal Income Tax Update

Keith, a white man with brown hair, wears wire-rimmed glasses, a white shirt and black jacket.By Keith A. Wood

I. Wife Not Entitled to Any of Foreclosure Sales Proceeds of Husband’s Marital Home to Pay Husband’s Taxes Since Title was Solely in the Husband’s Name; United States vs. Byers, US Court of Appeals, 133 F 4th 824 (8th Cir. 2025).

Mr. and Mrs. Byers lived in Minnesota in a home titled solely in Mr. Byers’ name. Mr. Byers owed substantial taxes. The IRS sought to foreclose on Mr. Byers’ home to satisfy his tax debt.

Although the home was titled solely in Mr. Byers’ name, Mrs. Byers argued she was entitled to one-half of the foreclosure sales proceeds because the home was a marital homestead under Minnesota law. Under Minneszota homestead exemption law, even if property is owned by one spouse, the non-owner spouse has legal protections to preserve the family homestead. For example, if the homestead owner is married, he cannot convey any portion of the homestead without the signatures of both spouses. Mrs. Byers argued the Minnesota homestead exemption and the Supreme Court’s decision in Rogers, 461 U.S. 677 (1983), gave her a property interest in the home that should be protected from the IRS foreclosure sale.

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Harnessing the Potential of Early Career Attorneys in a Municipal Law Office

Sofia, a woman with dark brown hair and brown eyes, wears a blue blouse and glasses. By Sofia Hernandez

Look around any municipal law conference, and it is clear that the municipal field tends to hire mid-to-late career attorneys. But how does an office build long-term institutional knowledge and bring in new ideas if it only hires from certain age and experience groups?

Prior to my hiring at the Durham City Attorney’s Office (CAO), the youngest person in our office was 49 years old. Let me be clear, as someone who has recently joined the over-forty club, I am not implying that someone in their forties is out of new ideas. However, having supervised dozens of interns and externs and taught classes at a law school, I have witnessed very different approaches to office culture and client services from those who are 25+ years out of law school than those who are 25 years old. Both bring value to a diverse and thriving office. So how does the municipal field actively work to harness the potential of early career attorneys to better serve local governments?

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What To Do If You Didn’t Pass the Bar Exam

Tiqeece, a Black man with black hair, wears a blue shirt, plaid blue tie, and grey blazer. He is smiling and holding a book.By Tiqeece Brown

Hey, come here – let me give you a hug. Yell if you need to, cry if you need to, or let’s just sit and process. Feel the full weight of what just happened. You didn’t receive the score you hoped for to become licensed. Yes, it sucks. But your hard work was not wasted, and this moment does not define you.

Remember how excited you were when you got accepted into law school? When you walked across that graduation stage? That joy is still yours. Your score is not a reflection of your intellect, your worth, or your ability. It’s just a barrier – and barriers can be broken.

Take a breath. Give yourself space to grieve – sulk under a blanket, hit DND (Do Not Disturb), cry it out, order comfort food, binge a movie. But only for a short while.

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The Myth of No Bad Days

Nicole, a white women with brown hair, wears a black blouse and black blazer.By Nicole Ligon

By all outward measures, things have gone “right” in my life. I’m happily married to my best friend, and we share two wonderful children. I hold a tenure-track law professor position at Campbell Law School — it’s my dream job, and the community here has warmly supported my growth as both a scholar and a teacher. Before that, I earned my J.D. from Duke Law School, served as an editor of the law review, practiced at a big law firm, and now count some of the world’s most generous, brilliant mentors among my greatest blessings. My CV reflects awards, publications, and invited talks. And yet, despite all of this, I often feel like I fooled everyone to get here.

There’s a persistent tension between how I appear to the world and how I feel inside. I spend so much time wondering how I came to be where I am that when something doesn’t go my way, I cling to it as confirmation of my self-doubt. Strangely, I never do the opposite. I don’t cling to accomplishments. I don’t let success reassure me. If anything, I explain it away: a fluke, luck, a clerical error, someone being kind.

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Congratulations to Deputy Commissioner Ashley Moore

Kyla, a white woman with brown hair, wears a black blouse with white stripes and a black blazer.By Kyla K. Block

The Industrial Commission has named Ashley Moore as the Chief Deputy Commissioner, replacing Deputy Commissioner Kevin Howell, who had served in this role for the past year and a half, while also serving as a Deputy Commissioner and working as the Dispute Resolution Coordinator. Deputy Commissioner Moore has worked at the Commission since 2015 and currently serves as a Deputy Commissioner and the Claims Administration Director. She will start her role as Chief Deputy Commissioner on November 1, 2025. Congratulations to Deputy Commissioner Moore and many thanks to Deputy Commissioner Howell for all his work.

 

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