C-corp as 2% owner of LLC?

[Mike B.]

This is a difficult topic to keyword search for so pardon me if it's commonly discussed. From at least one taching source (but possibly the same author) I've heard (podcast) or read about setting up your LLC with a C-corp as a small percent owner. The reasoning being certain tax advantages.

My question is general and lets assume I know the LLC structure is whats right for me, but now I'm just considering going the extra step and forming a c-corp to be a 2% owner of the LLC (me or me and my wife as 98%). Lets also assume the straight cost benefit works for me.

Is this setup common? Is it controversial?

I'm hoping those that reply are familiar with the "teachings" because the details escape me but I can go back and find them (and have a mental note to do just that when the time comes and after more DD - like this post!)

Thanks,

Mike