Just want to be sure I'm correct on this. If a person sets up 2 LLC's with sec of state, they only need an EIN for one and the other can be a subsidiary and the state will not expect a separate tax return. Correct?
-
-
Also, thinking they would have 2 annual fees? Can they have a subsidiary under the same umbrella of the first? -
A wholly owned subsidiary LLC doesn't need its own EIN for Federal purposes unless it has its own employees. If it does, then it will need an EIN, because it has to withhold and report its own employment taxes even though it's disregarded for income tax purposes. An EIN may also be needed to get a bank account. Either way, W-9s get prepared in the parent's name and EIN, with the subsidiary as a DBA.
As for fees, I'm not familiar with how North Carolina handles annual fees for LLC maintenance. In many states, every LLC has to file, whether wholly owned or not.
Jamie--
James C. Samans ("Jamie")Comment
Comment