I agree with @M-MTax in that the C corporation does not file a form 1122.
This SMLLC is not a subsidiary since it is a disregarded entity for tax purposes.
This SMLLC is treated as a division of the C corporation. If you want, you can set up separate books and records internally to allow you to determine profitability levels, etc.
While the facts are limited, not sure the overall goals and what other operations are going on within the C corporation. Having the one on one with your CPA should help provide a better understanding.
*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.
