Discussion Archives:Can an LLC have a Corporate subsidiary

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Discussion Forum Index --> Advanced Tax Questions --> Can an LLC have a Corporate subsidiary


Discussion Forum Index --> Tax Questions --> Can an LLC have a Corporate subsidiary

Stardog5 (talk|edits) said:

4 March 2009
I have a new client who is telling me that they have an LLC with a corporate subsidiary. I am trying to get a hold of their attorney to find out if this is something specific to DE Series LLC's because I have not heard of this before. If the LLC is allowed to have a corp sub, how would it be shown on the Form 1065, which is the form they used in prior years for the LLC? This is the first year of filing with the subsidiary.

Kevinh5 (talk|edits) said:

4 March 2009
the same as any other stock holding by a partnership

Kevinh5 (talk|edits) said:

4 March 2009
the C corp is a separate taxpayer.

the LLC taxed as a partnership is the sole shareholder.

Stardog5 (talk|edits) said:

4 March 2009
Thank you Kevinh5. So does that mean I file a separate 1120 for the C Corp and 1065 for the LLC? Do I indicate anywhere on either or both returns that the C Corp is the subsidiary of the LLC?

Kevinh5 (talk|edits) said:

4 March 2009
Schedule K on the 1120

Stardog5 (talk|edits) said:

4 March 2009
Yes, I understand on the Sch K on the 1120 - thanks. I will show the C Corp as 100% owned by the LLC on the Sch K. Is there anywhere I indicate on the LLC that it owns the C Corp - I don't see anywhere on Sch B of the 1065.

Elwood (talk|edits) said:

5 March 2009
The 2008 Form 1065 asks the question of whether the partnership owns 20% or more of the voting stock of any corporation. See Sch B, question 4(a) (bottom of Form 1065, page 2). The 2007 Form 1065 didn't ask this question.
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