September 17, 2016

Can A C-Corp Own an LLC?

Can a c-corporation be the sole member of an LLC and if so how report income/loss…..

Answer

Yes, an LLC can have a C-corporation as its member.

The LLC’s income would pass-through to the c-corporation. The c-corporation would report the profit/loss on its own tax return.

Remember that unlike LLCs, a c-corporation files its own tax return separate from its owner(s).

I would suggest speaking to a professional (attorney / accountant) when you start getting multiple entities involved and co-owning one another.

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