topic defalut classification in Tax law changes

defalut classification

ron2024 — Tue, 10 Feb 2026 10:34:00 GMT

Single member LLC, by default, it reported on the Schedule C of 1040.

But my LLC is owned by one Corporation. What tax form do i need to use?

Thank you

Re: defalut classification

JulieS — Wed, 28 Feb 2024 13:29:01 GMT

Yes, in a case where the single member LLC is owned by a corporation, the LLC should be reflected on its owner's federal tax return as a division of the corporation.

In other words, you report this income on the tax return of the corporation that owns the LLC. See the IRS guidance for this issue.

Re: defalut classification

ron2024 — Wed, 28 Feb 2024 14:05:03 GMT

Thank you so much!

Just combine my Corporation with my LLC' income and expenses, right? For example, LLC has a wage expense $100, Coporation has a wage expense $300. So i put $400 as wage expense on my 1120 form. right ?

Thank you

Re: defalut classification

JulieS — Wed, 28 Feb 2024 14:26:54 GMT

Yes, that's correct.

Re: defalut classification

ron2024 — Wed, 28 Feb 2024 14:33:01 GMT

Thank you! I have another LLC owned by a corp that is registed in another country. This Corp does not file 1120. What tax form i need to use? thanks

Re: defalut classification

RobertB4444 — Thu, 29 Feb 2024 16:26:47 GMT

For purposes of filing in this country it does not matter what country your subsidiary is in - it needs to file as part of the owner corporation's tax return here.

If a foreign corporation has a subsidiary that is located here in the US then that subsidiary portion must file US tax returns. Some countries have reciprocal agreements with the US that may supersede this so you'll need to check on that.

@ron2024