If we have an LLC that is owned 100% by a C-Corp is it considered a disregard entity for tax purposes since it would be owned by a single member? Would you have to file form 1122 with the IRS or just file the 1120 tax return for the C-Corp and include the LLC's revenue, expenses, income, and etc. on the C-Corp's 1120 form?
I do have an inquiry to our CPA, but wanted to put this out there since I know others may have similar questions over time.
Also what equity accounts would the LLC have since it is owned 100% by the C-Corp? Would it have: Member Equity, Member Contributions, and Member Draw?
I'm trying to wrap my head around how money would move between the parent and child company given that it is not a person.
I am new to this so appreciate your patience with me.
