My S Corp has 100% ownership of a subsidiary LLC. Do I just add the subsidiary's income/expenses to the parent company's on the 1120S or is there a form for subsidiaries?

[ajmig]

And for that matter, do states have their own ways of approaching this matter? I mostly would like to figure out of TurboTax has a way of noting subsidiary income/expenses or if it's just simple math.

[AmandaR1]

What type of business is your S-corp? S-corp is just a tax category. Often people have a LLC (there's no tax LLC form) and elect to have it taxed as an S-corp. If that's the case then the S-corp represents how the LLC is taxed. In either case - I answered your question below!

[AmandaR1 · Accepted solution]

When an LLC has one owner, the activity (income, expenses, etc.) are directly reported on the owner's tax return because the LLC is 'disregarded' for taxes. There's no form to report the activity separately.

[ajmig]

Thanks! It's an LLC taxed as an S-corp, which owns an LLC. So if I understand you, I'll just add its income/expenses to the parent company's as if it were any other income source for the company.

[AmandaR1]

Exactly, the LLC activity, income and expenses, can just be added to the 'parent' return. Sounds like you know this, but you should keep separate accounting records for the LLCs.

[ajmig]

Awesome. I have separate company files in Quickbooks for each LLC and I will combine the totals in TurboTax. Thank you!

[osmanpage]

I would like some clarification here. Don't we need to file form 1122 if we include a subsidiary in the consolidated tax return? https://www.irs.gov/pub/irs-pdf/f1122.pdf

[LindaB1993]

The Form 1122 generally applies to a C-Corporation, not an S-Corporation.

[janetko22]

What about the parent having one EIN and the sub having another EIN? Where do you put the 2nd EIN in Turbotax?

[RobertB4444]

The sub's EIN doesn't get entered in this case since all of the income is going to be attributed to the parent's EIN.  The Sub doesn't file and doesn't need it's EIN submitted.

[steven1900]

What if the sub's EIN had income reported to it on a 1099? Seems like there should be some way of reflecting that. 

[AliciaP1]

No, if the ownership of the subsidiary is properly reported, the subsidiary is not required to file separately or report separately.  Just ensure the income reported to the sub is reflected on the parent tax returns.

[Jay Vee]

Hello, I need help with some information.

I own a Business/Corporation with S Corp Tax election. It is a Holding/Managing company and owns an LLC and it is the only member of the LLC. 

I know that for the S Corp I need to file Form 1120s and that I will in turn receive a K1 which I will use to file schedule E on my personal 1140 tax return. 

What I don't know is how do I file the LLC return? 

How do I add all the LLC's income and expenses to the Parent/Holding/Managing S Corp?

[AmyC]

You have all the records for the LLC, income, expenses, etc. They are added in with the income and expenses of the parent. Quite literally. If the LLC has $10k income you just add it to the other income of the parent. Same with the expenses and categories.

@Jay Vee