Single member LLC owned by S corp

Forum|Forum|3 years ago
February 2, 2023
3 replies
32 views

Hi,

I have a client that started up a single member LLC last year that is owned solely by his S corp. All income and expenses flowed through the SMLLC. I'm assuming we just run these figures through the S corp being that the SMLLC is a disregarded entity. Does anyone know if there's a spefic form or way to notate this to the IRS on the 1120S?

Thanks!

ProSeries Professional

This topic has been closed for replies.

Best answer by dascpa

I always attach an additional statement explaining the SMLLC owned by the entity, reporting also their name and EIN. No clue if it's ever read but never had a problem doing it this way.

dkh

Level 15

This doesn't make sense. Are you sure he didn't file an S Corp election for the SMLLC ? Or is the SMLLC a shareholder of the SCorp?

sjrcpa

Level 15

@dkh

It makes perfect sense.

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

dkh

Level 15

@sjrcpa Help me understand. Why form an SMLLC to be owned by an SCorp ?

sjrcpa

Level 15

No form.

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

A

Avs19Author

Level 6

So just report the SMLLC's income expenses on the Scorps 1120S? No need anything to notate to the IRS.

dascpaAnswer

Level 11

I always attach an additional statement explaining the SMLLC owned by the entity, reporting also their name and EIN. No clue if it's ever read but never had a problem doing it this way.

A

Avs19Author

Level 6

Great, thanks for all of your help!

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