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?

[VolvoGirl]

You file a 1120 S return.  Not a Schedule C nor a 1065.  You need Turbo Tax Business.   You will get a K-1 or W2 from the S corp return to enter into your personal return.

Turbo Tax Business is a separate program from Home & Business.  It is not available to do online or on a Mac.

You can buy the Window's version here…..

https://turbotax.intuit.com/small-business-taxes

[Anonymous_]

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@jorgito153 wrote:

.....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?

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S corporations, and LLCs electing to be treated as S corporations for federal income tax purposes, file Form 1120-S.

Single-member LLCs are disregarded entities and report income and expenses on Schedule C. 

Multi-member LLCs are treated as partnerships by default and report on Form 1065 (and issue K-1s to their members).

S corporations must file Form 1120-S whether or not they have income or expenses.

Multi-member LLCs must file Form 1065 unless they have neither income nor expenses for the tax year.

Single-member LLCs (and sole proprietorships) file Schedule C unless they have neither income nor expenses.

[Mike9241]

If you are asking about a single-member LLC owned by an S-Corp. pretend the LLC doesn't exist (there isn't any return for a single member LLC unless it elects to be taxed as other than a disregarded entity at least at the federal level) and prepare the S-Corp as if there was no LLC

however, if the LLC has made its own S-corp election complication arise. see this thread

https://ttlc.intuit.com/community/business-taxes/discussion/our-company-is-a-s-corp-we-have-100-inte... 

[Jac123]

@AmyC 
After reading the full conversation I understood that when an S- Corp owns an LLC (Parent-holding company), the LLC income is reported on other income/expenses, so in that case the sub-LLC's EIN is not reported to the IRS at all.

Does this make any sense? 

[RobertB4444]

That is correct.  Their income is just reported as part of the parent company.

@Jac123 

[Jac123]

Thanks, @RobertB4444 
so that sounds to be a loophole in the system to hide some income from the LLC, for example, if the LLC gets a 1099 

anyone please advice 

[RobertB4444]

A subsidiary is really just part of your company.  If you want it spun off or accounted separately then it needs its own EIN and then it files its own tax return.  Otherwise its all just one company.

So the only loophole is just not reporting some of your income.  Which feels like its the same loophole as always.  As long as you don't mind risking an audit.

@Jac123 

[Anonymous_]

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@Jac123 wrote:

so that sounds to be a loophole in the system to hide some income from the LLC, for example, if the LLC gets a 1099 

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If the LLC gets a 1099 with what TIN (Tax ID number) on it?

There is no loophole as the IRS will also receive the 1099 and expect someone (or some entity) to report the income.

[Jac123]

so how will the IRS match the 1099 with the income reported on the parent entity if no EIN from the LLC is entered on the parent company tax return?

@Anonymous_ 

[Anonymous_]

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@Jac123 wrote:

so how will the IRS match the 1099 with the income reported on the parent entity if no EIN from the LLC is entered on the parent company tax return?

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EINs are tied to some other TIN and, in this case, it may be tied to the parent company's TIN (the S corporation).

Regardless, the 1099 will contain someone or some entity's TIN and the IRS will issue correspondence if the figures on that 1099 are not matched somewhere (or not reported).