Best way to Feed Up Business

[jknecht]

I have a new client that went and opened two businesses.....both LLCs.

One is a single member LLC (CO) that has feeds a partnership (WY).

Trying to figure out the best way to set these up within LaCerte so that it flows properly....

The Single Member LLC is earning all the money and the WY Business is just a pass through.

Thanks in advance.

[TaxGuyBill]

Can you clarify what you mean by "feeds"?   Do you mean that the SMLLC is owned by the Partnership?

The SMLLC is "disregarded".  So if it is a owned by the Partnership, all income and expenses are reported on the Partnership return.  Nothing is done for the SMLLC (at least on the Federal level).

[jknecht]

Yes....the SMLLC is owned by the Partnership...

So nothing at the Fed level meaning no return but for CO....I would as that is where the money was earned.

Then for SCorp I file the Fed.

Should I do the SMLLC in a Partnership return and the SCorp as a 1065?

Thanks

[sjrcpa]

Where did the S Corp come from?

As Bill said a SMLLC is disregarded so you don't prepare a partnership return for it. You don't prepare a partnership return for an S corp either.

Start over:

Who owns the SMLLC?

Who owns the Partnership LLC?

Which entity(ies), if any, made an S election?

[jknecht]

SMLLC is owned by an Entity

Entity is owned by two partners

No S Corp election yet.

Thanks

[Mascafe]

Sounds like a problem you should send to someone else.

[sjrcpa · Accepted solution]

Entity owned by two partners files a 1065 Partnership return. The 1065 includes the activity of the SMLLC that it owns.