Doesn't appear that there was any follow-up response here:
- @AmeliesUncle response is correct.
- Since the LLC is owned 100% by the S corporation, it is treated as a disregarded entity.
- As such, all income, expense, gain, loss, etc. is reported directly on the S corporation form 1120-S.
- I would not recommend netting anything; not popular with the IRS.
- Other than no netting of the LLC activity, how you report that is up to you. Since the facts are limited, we have no idea of the interplay of the two businesses. Just make sure that the character of the income, loss, etc remains the same as it flows out to the shareholder(s) on the respective K-1.
*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.
