Hi;
In reporting a SMLLC (did not elect to be treated as a corporation) as a division of the Parent (S Corp), I understand that the Balance sheets and P&L are combined and put on the S Corp return. Questions:
1. If you report the SMLLC on the S Corp one year (Year 1), but then in Year 2 you don't, is this considered a liquidation of the SMLLC on the Books of the S Corp? I guess what I am asking once you do this in year one you can't switch the SMLLC back to a Schedule C Filer.
2. By combining the Financial Statements, we really don't have on the Parent's book an account labeled "Investment In SMLLC", Correct?
In reporting a SMLLC (did not elect to be treated as a corporation) as a division of the Parent (S Corp), I understand that the Balance sheets and P&L are combined and put on the S Corp return. Questions:
1. If you report the SMLLC on the S Corp one year (Year 1), but then in Year 2 you don't, is this considered a liquidation of the SMLLC on the Books of the S Corp? I guess what I am asking once you do this in year one you can't switch the SMLLC back to a Schedule C Filer.
2. By combining the Financial Statements, we really don't have on the Parent's book an account labeled "Investment In SMLLC", Correct?