Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I have filed a c corp return. I have listed as companies owned

an s corp and an...
I have filed a c corp return. I have listed as companies owned an s corp and an llc. Is this correct?
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
10/30/2013
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,244
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Stephen G. :

Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.

Stephen G. :

I'm sure I understand your question; are you saying that a "C" corp owns an "S" corp and LLC, or what are you asking?

Stephen G. :

I'm not sure it should say, sorry.

Customer:

Yes. The c corp owns several companies. This is the first year filing this way. The c corp is a holding company.

Stephen G. :

The "C" corporation can't own an "S" corporation. Do you have your own CPA?

Customer:

I am doing it. I am a cpa from a long time ago. I haven't prepared a c return in years. I did not file a consolidated return but I thought that the llc filing as an s corp could be owned by the c.

Stephen G. :

No. You can't pass through S-Corp earnings or losses to a C-Corp; only to individuals; you'll need to fix your S-Corp ownership to the individual owner(s) & file a separate return for the S-Corp. The C corporation would need to file its own return.

Stephen G. :

You LLC can't be owned by a C-Corp either

Stephen G. :

Your LLC can file as a partnership if there's more than one member or as a sole proprietor if there's a sole owner or an S-Corp or a C-corp.

Customer:

I understand. I filed an information return for llc/s corp. It had a loss. I did not put the loss on c return. I only listed on the c return as owned.

Customer:

What kind of companies then can a c corp own?

Stephen G. :

It doesn't work that way; if you chose to file as an S-Corp; you must issue a K-1 to the owner; that owner can't be an S-Corp.

Stephen G. :

Other C Corps

Stephen G. :

You see the way it works is different than ownership; As you know an LLC doesn't have a particular return that is an LLC return so it has those filing options I've given.

Stephen G. :

Who owns your LLC? Just you?

Stephen G. :

In other words who are the members of the LLC?

Stephen G. :

Do you actually have an "S Corp" or do you have an LLC filing as an "S-Corp"?

Customer:

I am doing this for someone else. He has 3 companies that do real estate stuff. We formed a c corp to own them all are llcs with sole ownership and one is an llc filing as an s. To maximize tax advantages we formed holding company. According to tax law, it's my understanding that this is allowed.

Stephen G. :

What are you doing with the S-Corp as far as a K-1 is concerned?

Customer:

I made it out to the holding company. It was a loss. Inalso opted not to fike a consolidated return for this first year.

Customer:

Llc filing as an s corp for one of the companies, llcs for the other two

Stephen G. :

Here's an example of the way the LLC's are treated for tax purposes.

Stephen G. :

Income taxation


For U.S. federal income tax purposes, an LLC is treated by default as a pass-through entity.[4] If there is only one member in the company, the LLC is treated as a “disregarded entity” for tax purposes, and an individual owner would report the LLC’s income or loss on Schedule C of his or her individual tax return. Thus, income from the LLC is taxed at the individual tax rates. The default tax status for LLCs with multiple members is as a partnership, which is required to report income and loss on IRS Form 1065. Under partnership tax treatment, each member of the LLC, as is the case for all partners of a partnership, annually receives a Form K-1 reporting the member's distributive share of the LLC's income or loss that is then reported on the member's individual income tax return. On the other hand, income from corporations is taxed twice, once at the corporate entity level and again when distributed to shareholders, thus more tax savings often results if a business formed as an LLC rather than a corporation.[5]


An LLC with either single or multiple members may elect to be taxed as a corporation through the filing of IRS Form 8832.[6] After electing corporate tax status, an LLC may further elect to be treated as a regular C corporation (taxation of the entity’s income prior to any dividends or distributions to the members and then taxation of the dividends or distributions once received as income by the members) or as an S corporation (entity level income and loss passes through to the members). Some commentators have recommended an LLC taxed as an S-corporation as the best possible small business structure. It combines the simplicity and flexibility of an LLC with the tax benefits of an S-corporation (self-employment tax savings).

Customer:

Is there an option to talk directly on a consulting basis. You have my credit card and phone numbrr?

Stephen G. :

No. Unfortunately that isn't permitted and the experts do not have that information & if you try to provide your phone number, or if I were to try to provide mine, the website would "x" it out & as experts we aren't permitted to contact customers outside of the site; that's why this "chat" method is available.

Customer:

I received dividends from one of the llcs and reported tgat on c return.

Customer:

Ok, thank you for your help.

Stephen G. :

Does the holding company (C corp) own the LLCs or does the individual own the LLCs?

Customer:

Holding company

Stephen G. :

Here are your options as I see them;

Stephen G. :

OK, then you can't file an S-Corp return for any of the LLCs

Stephen G. :

You can file 3 C corp returns.

Stephen G. :

or a consolidate C corp return

Stephen G. :

So these must be new LLCs?

Stephen G. :

If you file separate C corp returns you must deal with allocation of the "Surtax exemption" due to the common ownership

Customer:

I will file an amended c return.

Stephen G. :

If you want to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Thanks again for using us for your tax and financial questions. You may get a short survey from the site; if it isn't too much trouble I would appreciate it if you would answer it; the survey results are used to rate our performance;

Please remember to rate my response; it is the only way we get credit for our work.

Customer:

Thank you.

Stephen G. :

Thanks for using JustAnswer.com

Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,244
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified
Stephen G. and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,244
7,244 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
If LLC taxed as S Corp (1) wholly owns another LLC (2) that
If LLC taxed as S Corp (1) wholly owns another LLC (2) that is a disregarded entity, and a 2% shareholder is on (2) payroll, should workers compensation be included in that W-2?Basically, a 2% shareho… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Should LLCs listed as a Partnership (P) or Individual/sole
Should LLCs listed as a Partnership (P) or Individual/sole proprietor or single-member LLC receive 1099-misc?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
We have a NYS LLC that has a lease with a building in
thank you. We have a NYS LLC that has a lease with a building in Brooklyn NY. The LLC is only the tenant, but the rent and expenses are paid by one of the members of LLC. Does the LLC have to file an … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Changing being taxed as an LLC sole proprietor to an LLC
changing being taxed as an LLC sole proprietor to an LLC taxed as an S-corp, do they need to file Form 8832 or Form 2553 or both?If both, in what order?THANKS… read more
abci168
abci168
Principal
27 satisfied customers
Can the sole owner of an LLC in PA. be held personally
Can the sole owner of an LLC in PA. be held personally responsible for unpaid property and school tax on vacant land owned by the LLC. LLC does not have money to pat taxes and probably won't. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
A partner and I formed a LLC we each own 50/50 of the LLC. A
A partner and I formed a LLC we each own 50/50 of the LLC. A relative gifted me 70k to start up business. Will the LLC need to pay tax on that amount ?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I need advice on whether or not to create an LLC for a
I need advice on whether or not to create an LLC for a rental property that own … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
We currently have two Members in an LLC. The LLC is taxed as
We currently have two Members in an LLC. The LLC is taxed as a partnership. Member 1 owns 70% and Member 2 owns 30%. We are wanting to sale 5% of our ownership to a new Member. Member 1 will sell 3.5%… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can I own assets in a LLC and not be a member of the LLC?
Can I own assets in a LLC and not be a member of the LLC? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Is it legal for an LLC to gift real property to an
is it legal for an LLC to gift real property to an individual without the fair market value gift tax/ … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,797 satisfied customers
A client opened an LLC partnership in June 2017. They
A client opened an LLC partnership in June 2017. They received payouts from the company in 2017 from investments made by their partner. They have no basis in the company. If the LLC elects to operate … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
LLC tax status I have a client that is a North Carolina LLC
LLC tax statusI have a client that is a North Carolina LLC taxed as a S-corporation. Because of her business change, she needs to change her taxing entity back to a Sole proprietor but still needs the… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
I have a LLC with another 3 partners. We dissolved the LLC
I have a LLC with another 3 partners. We dissolved the LLC at the beginning of 2016. But now Franchise tax board gives us a pre-levy letter of $1546.14, because we did't pay the $800 in 2015.its going… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Case: - a single owner of a U.S. LLC - disregarded LLC /
Case: - a single owner of a U.S. LLC - disregarded LLC / passthru - non-U.S. person living abroad in Portugal and being taxed there - no physical presence in the US - no physical goods sold etc - the … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
We have a -term tax client - an LLC - whose tax return is
We have a long-term tax client - an LLC - whose tax return is due on extension Friday. Because of health problems, the owner is running very late and finishing an accurate return by Friday is not like… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
I have a few LLC's that I am preparing tax returns for. They
Hello, I have a few LLC's that I am preparing tax returns for. They are all related to real estate and are owned by my husband and me, but I have them structures as multimember LLCs and do separate ta… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x