C-Corp with 1 LLC need to be consolidated 1120?

Forum|Forum|6 years ago
December 7, 2019
1 reply
16 views

I have a C-Corp with 1 LLC subsidiary, all activity is in the LLC, no activity in the parent corp. Do I have to file a consolidated 1120 or can I treat the LLC as a disregarded entity and report on Schedule K line 5a? ProConnect Tax Online doesn't allow me to include Form 851 to list out the entity so I'm trying to figure out the correct way to report it so I can figure out if I need new software. Thanks!

ProConnect Tax Online

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Best answer by sjrcpa

Its not a consolidated return. The LLC is ignored for tax purposes. All LLC activity is reported on the 1120 - line by line- as if the LLC did not exist.

sjrcpaAnswer

Level 15

Its not a consolidated return. The LLC is ignored for tax purposes. All LLC activity is reported on the 1120 - line by line- as if the LLC did not exist.

The more I know the more I don’t know.

U

userbrent

Level 2

Hi sjrcpa,

Can you help with my question? Suppose my client has a parent company that is an LLC taxed as a partnership and they have a subsidiary company 100% owned by the parent company. Do I just combine the income and expenses of the subsidiary into the parent company (consolidate)? If so, do I report the EIN or anything about the subsidiary in the parent company's 1065?

Thanks for any help!

Brent

sjrcpa

Level 15

Yes to the first question.

On the 1065 questions, somewhere it asks about ownership of other entities. You'll disclose there. I'm in a S Corp now so can't look.

The more I know the more I don’t know.

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