Some follow-up responses:
- As has been noted several times, this forum is not the place to have a tax planning discussion. Just doesn't work. You need to have a one-on-one with a tax professional. Not only so you can plan, but so you understand the tax implications BEFORE you start going down the wrong path. Don't be penny wise and pound foolish. Those become tough lessons.
- What you are also missing, is that when the C corporation is 100% owner of an LLC, that LLC is a disregarded entity and is treated as if it were a division of the C corporation.
- The IRS doesn't care what division generates the most profits. It looks to the C corporation as one entity.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
