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


Answer

Yes, a Limited Liability Company 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 federal tax return separate from its owner(s) in addition to a state return.

I would suggest speaking to a professional (attorney and accountant) when you start getting multiple entities involved and co-owning one another as specific language should be included in the Operating Agreement in order to protect the business owners.

Back To LLC Questions & Answers