SMLLC under the umbrella of an LLC partnership-are separate FEINs required? - Spidell

SMLLC under the umbrella of an LLC partnership–are separate FEINs required?

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Message Board SMLLC under the umbrella of an LLC partnership–are separate FEINs required?

  • This topic has 2 replies, 2 voices, and was last updated 3 weeks, 1 day ago by Doug Thorburn.
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    • #257961
      Doug Thorburn
      Participant

      Two SMLLCs will be operating under the umbrella of an LLC partnership. Since they will file as disregarded entities with the state only, do they even need separate FEINs?

      Additional bonus question: we see in Lacerte how to add LLCs, in screen 37, “membership in disregarded entity. It asks for FEIN, SOS file number and whether there is “no CA source income.” Without inputting the FEIN, we are NOT getting a diagnostic to add it (suggesting, we don’t need it, the subject of our first query). However, how the heck do we file the separate SMLLC with the state to pay them out client’s hard-earned $800? Perhaps on a separate screen in the individual module?

    • #258085
      Diane White
      Participant

      For purposes of employment tax and certain excise taxes, SMLLCs are considered separate entities by the IRS and should have their on FEIN.

      I know in Lacerte you may prepare a 568 in either the individual or partnership module. You indicate it is a SMLLC and what type of tax return the owner files. The partnership module will prepare a federal return which you ignore. The correct 568 form and schedules are produced. I suspect other tax software will have similar inputs.

    • #258290
      Doug Thorburn
      Participant

      I should have mentioned this is a real estate rental partnership, so no SE tax. Partnership files Form 568 with the state (1065 federal), so we don’t “ignore” a federal return–we file it and form 568 with the state as a partnership return.

      Again, two questions: one, must the two SMLLCs the partnership owns have their own FEINs? Two, assuming the state wants $800 per SMLLC, how do we file separate SMLLC returns with the state?

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