Holding company and taxes

[dlaunder]

Holding company (C Corp) solely owns Operating Co (also C Corp).  Operating Company has all the activity, and I assume pays the tax.  What gets filed at the Holding Company level?

[TaxMonkey]

Your question is quite vague.  C corps are not pass through entities.  The holding company will file an 1120 reporting its activity and attributes. It may have received dividends from the operating company, or have any number of other reporting requirements.

[sjrcpa]

Holding Company files a consolidated return which includes the operating corp?

[dlaunder]

Both the HoldCo and the OpCo are C Corps, with all the activity in the OpCo.  Wasn't sure what to do (if anything) with the HoldCo.

[TaxMonkey]

C corps are required to file tax returns even with no activity.  Although, SJRCPA raises an interesting possibility of filing a consolidated return.

The vagueness of our post has more to do with WHY, you would have a company with no activity own another company.

[sjrcpa]

Secrecy?

Maybe it was the end result of a sale transaction/reorg.

[dlaunder]

Holding Company purchased existing C-Corp that had been in business since 1991.  Holding company has only this C Corp for assets.