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.
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.
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
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.
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