A few comments here:
- In general, a LLC cannot be a shareholder of an S corporation since a company (LLC) is not an eligible shareholder.
- However, there is an exception if the LLC is a single member LLC that is disregarded for federal income tax purposes. This appears to be your situation.
- To avoid any issues, I recommend you issue the LLC taxed as an S corporation K-1 in your name and SS#. This will avoid any issues and potential red flags with the IRS.
- Since the holding LLC is disregarded, the S corp K-1 should be reported as if you owned it directly.
- There is no separate federal filing for the SMLLC Holding Company.
*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.
