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I have a C-Corp with 1 LLC subsidiary, all activity is in the LLC, no activity in the parent corp. Do I have to file a consolidated 1120 or can I treat the LLC as a disregarded entity and report on Schedule K line 5a? ProConnect Tax Online doesn't allow me to include Form 851 to list out the entity so I'm trying to figure out the correct way to report it so I can figure out if I need new software. Thanks!
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Its not a consolidated return. The LLC is ignored for tax purposes. All LLC activity is reported on the 1120 - line by line- as if the LLC did not exist.
The more I know the more I don’t know.
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Hi sjrcpa,
Can you help with my question? Suppose my client has a parent company that is an LLC taxed as a partnership and they have a subsidiary company 100% owned by the parent company. Do I just combine the income and expenses of the subsidiary into the parent company (consolidate)? If so, do I report the EIN or anything about the subsidiary in the parent company's 1065?
Thanks for any help!
Brent
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Yes to the first question.
On the 1065 questions, somewhere it asks about ownership of other entities. You'll disclose there. I'm in a S Corp now so can't look.
The more I know the more I don’t know.
