My S Corp has 100% ownership of a subsidiary LLC. Do I just add the subsidiary's income/expenses to the parent company's on the 1120S or is there a form for subsidiaries?

Forum|Forum|6 years ago
June 5, 2019
3 replies
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And for that matter, do states have their own ways of approaching this matter? I mostly would like to figure out of TurboTax has a way of noting subsidiary income/expenses or if it's just simple math.

TurboTax Business Windows

AmandaR1

Employee

What type of business is your S-corp? S-corp is just a tax category. Often people have a LLC (there's no tax LLC form) and elect to have it taxed as an S-corp. If that's the case then the S-corp represents how the LLC is taxed. In either case - I answered your question below!

AmandaR1

Employee

When an LLC has one owner, the activity (income, expenses, etc.) are directly reported on the owner's tax return because the LLC is 'disregarded' for taxes. There's no form to report the activity separately.

ajmigAuthor

Thanks! It's an LLC taxed as an S-corp, which owns an LLC. So if I understand you, I'll just add its income/expenses to the parent company's as if it were any other income source for the company.

RobertB4444

A subsidiary is really just part of your company. If you want it spun off or accounted separately then it needs its own EIN and then it files its own tax return. Otherwise its all just one company.

So the only loophole is just not reporting some of your income. Which feels like its the same loophole as always. As long as you don't mind risking an audit.

@Jac123

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