If a partnership is sole member of two single member LLCs, how are these reported on the partnership's return?

[jdbradsherjr]

Do you set up the two single member LLCs as separate accounts and then combine them onto the owner partnership's return, kind of like a consolidated return? Or can you set up two subsidiaries within a single client, in this case, the owner partnership?

[George4Tacks]

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership.

[nethespiritu]

Hi there,

Can you please assist.  I have a single member LLC that is owned by another multi-member LLC, how and where do I efile the CA tax return?

Thank you.

[George4Tacks]

@nethespiritu  You should likely contact a California tax professional. https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.html gives some information, but this may not really be something to try on your, especially with one owned by another. 

[nethespiritu]

Hi George4Tacks,

This is not an FTB question.

My question is how to efile it within Proseries if the SMLLC is owned by a multi-member LLC.  I understand that if the SMLLC is owned by an individual that you can efile it with the individual's Form 1040.  How about if the SMLLC is owned by multi-member LLC, how can it be efiled? 

Thank you

[nethespiritu]

Thank you

[George4Tacks]

@nethespiritu You should ask in ProSeries portion of the forum.

How does the multi member file? It would be including in that filing, since the SMLLC  is disregarded. 

Start a new question in ProSeries. How does a (Partnership) (S-Corp) (Corp) .... report the income of a SMLLC that is owns? 

Each of the SMLLC may have to file a separate state filing (such as 568 for CA) and you may or may not be able to do that in PS. 

[nethespiritu]

Per PS rep, PS does not support the efiling of SMLLC within the multi-member PSP/LLC, it needs to be efiled with the tax matter partner/partnership representative (PR) personal tax return. 

[REman]

How is that accomplished in LaCerte?  The IRS does not provide clarification in these matters: If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership.

LaCrete is not allowing the SMLLC name or EIN to transfer over to the 8825 on the partnership return.  Looking for direction.

[George4Tacks]

@REman You should start any question for a specific software HOW TO in that software section. For Lacerte it would be at https://proconnect.intuit.com/community/lacerte-tax/discussion/03/302

If the LLC is owned by the corporation (partnership), then it is a disregarded entity and all of its activities would be reported as part of the Corporate (partnership) return. 

lF the LLC is a partner in a partnership, then it can be identified as DISREGARDED ENTITY or as an LLC with the type of entity that LLC is. Start in screen 7, Miscellaneous Info

[REman]

The SM LLC owns 75% of a business and is part of a TIC, not a partnership; however, the SM LLC is owned by a partnership.  We believe the SM LLC activity should flow to the 8825 on the partnership return.  We believe this to be the correct course of action. Agreed?