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.
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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.
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
The Form 1122 generally applies to a C-Corporation, not an S-Corporation.
What about the parent having one EIN and the sub having another EIN? Where do you put the 2nd EIN in Turbotax?
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.
What if the sub's EIN had income reported to it on a 1099? Seems like there should be some way of reflecting that.
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.
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?
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.
Could you Please be more specific. your answer stated that income and expenses be reported on 1120 S. how about the Schedule C or 1065 for the LLC ? Does it have to be reported with no income or expenses? if not, how does that LLC report its existence to the IRS or State? I m trying to figure this out for my knowledge purposes only. Thanks for sharing
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