Supposedly, I have 4 different individual LLC businesses with my wife and me serve as members, If I want to take advantage of Dividend-Received Deduction, do I need to form a parent company that owns all of these LLC businesses? If yes, will these LLCs be viewed as single-member since the parent company is now 100% sole owner? Moreover, is Dividend-Received Deduction only apply to C corp owns another C corp or can it also work for LLC owns another LLC?
The dividend received deduction is available when one corporation pays a dividend to another corporation - the goal is that the two corporations are not paying tax twice on the same monies. If single member LLCs are owned by one corporation and treated as 'disregarded' the corporation will report all dividends received from anyone outside the corporation.
For more information on Limited Liability Companies see:
the LLC and Single Member LLCs pages at IRS.gov.
ZanetaB | Former Moderator | 5/18/2009 - 1:51 pm
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