One or more Fed IDs

[TAX]

Client has Series LLC (Allowed in Illinois). Main LLC has one federal ID.

For example: Main Series LLC = ABC
Under ABC there are three separate LLC - X, Y & Z

Option # 1: IRS says that you can file tax return for "ALL" LLC's under Series LLC using One federal ID.

You will file tax return under FED ID of ABC. Account for all ABC, X, Y, & Z's income and expenses under ABC's fed ID.

Option # 2: You can get FED ID for each LLC under main LLC (Series) and thus file separate returns.

You will file four returns - ABC, X, Y, & Z separately.

Any thoughts?

Thanks!

[Matt Sova]

Who owns X, Y, & Z

If ABC is the owner of X, Y, & Z then all income and expenses are reported on ABC. Similar to a SMLLC all income and expenses are reported on the Schedule C unless a Corp is the only member of an LLC then the income and expenses are reported on the corp return.

[TAX]

If ABC is the owner of X, Y, & Z then all income and expenses are reported on ABC. Similar to a SMLLC all income and expenses are reported on the Schedule C unless a Corp is the only member of an LLC then the income and expenses are reported on the corp return.

Thank you!
Under this arrangement, ABC owns everything. (Side note: In past, client would have to form 4 different LLCs - very expensive in Illinois. Only IL and DE allowes it!)