Foreign Corp reporting - CA SMLLC - Spidell

Foreign Corp reporting – CA SMLLC

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Message Board Foreign Corp reporting – CA SMLLC

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 5 months, 2 weeks ago.

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  • #164639
    Tanya Scott
    Participant

    I have a Foreign Corporation that owns 100% of a CA LLC which is the owner of some rental property in San Diego.  The Foreign Corp is making an election for the rental property be treated as an effectively connected trade or business.  The LLC did not make an election to be taxed as a Corporation, so the default treatment would be that the CA SMLLC would be treated as a disregarded entity.  We filed the LLC return in CA, and have filed the federal return (1120-F) for the corporation… question is, should we also file a Corporation return for CA for the Foreign Corporation?

     

    Thanks for your wisdom in advance.

  • #164722
    Sandy Weiner
    Participant

    Yes, the foreign corporation is considered to be doing business in California as a result of its ownership of the CA LLC.