Who is liable for federal income taxes on Brightstar Care's Parent's combined taxable income?

According to Brightstar Care's 2025 Franchise Disclosure Document, BrightStar Group Holdings, Inc., the Parent company, has elected to be taxed as an S-Corporation under the Internal Revenue Code. Because of this election, the Parent itself does not pay federal income taxes. Instead, the responsibility for these taxes falls to the Parent's stockholder.

This means that the stockholder of BrightStar Group Holdings, Inc. is liable for individual federal income taxes on the Parent's combined taxable income. This is a common arrangement for S-Corporations, where the profits and losses are passed through directly to the owners, who then report them on their individual tax returns.

For a prospective Brightstar Care franchisee, this information is relevant for understanding the financial structure of the overall Brightstar Care organization. While it does not directly impact the franchisee's tax obligations, it provides insight into how the Parent company handles its tax responsibilities. Franchisees should consult with a financial advisor to understand the full implications of Brightstar Care's corporate structure.