Discussion:LLC, C corporation as member
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Discussion Forum Index --> Consumer Questions --> LLC, C corporation as member
| 4 November 2009 | |
| Is there a requirement for an LLC that has a c corporation as a member, to be taxed as a corporation or can the LLC be taxed as a partnership by default? If there is a requirement where can I find that information? | |
| 4 November 2009 | |
| Unless the LLC files Form 8832 with the IRS to be treated as another type of entity, a domestic LLC with at least two members is automatically classified as a partnership for Federal Income tax purposes. See Treas. Reg. §301.7701-3(b). If the C corporation is the LLC’s sole member, then the LLC is treated as a disregarded entity, and all of its income, deductions, etc. are reported on an 1120. | |
| 4 November 2009 | |
| I agree. An LLC would be taxed as a partnership unless the C corporation was its only member. | |
| 4 November 2009 | |
| So would the information on the k-1 from the LLC just be included on the corporation's 1120? | |
| 6 November 2009 | |
| Yes, just as if it were a partnership, if it has more than one member. That's the point. If the C corp is the only member, it doesn't file a 1065 or have a K-1 to give the C corp. Its income and expenses are included with those of the C corp; it is treated for tax purposes as a division, not a separate entity.
Read the regulation that Dave cited above. In fact, read all of the 7701-3 "check the box" regs. If you are going to work with LLCs, you need to know those regs like the back of your hand. | |
| 30 November 2009 | |
| Could a LLC have two members, one is individual and the second one is a “C” corporation with fiscal year is 6/30?
Therefore, the "C" corp. will not subject to SE Tax. | |
| 30 November 2009 | |
| depends on the tax year of the C corp whether the partnership LLC could have that fiscal year | |
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