mgledhill
Level 1

I have a client that has numerous partnerships, S-Corps etc.  In 2019 and in 2020, they changed ownership in many of these entities to being owned by a partnership.  As far as Lacerte goes, what is the best procedure for setting these entities up? 

Example, Entity "Parent" set up as a Partnership. Entity "Sub 1" and Entity "Sub 2" are both single member LLCs, owned by "Parent".  They will not be filing federal tax returns as their income will be reported under the parent and are not really "partnerships" (Being single member LLCs) 

I do need to file the necessary State Tax forms (like 568 for CA).  In 2019 I filed a statement with the parent return to IRS to notify them that EIN "Sub 1" is being filed under "Parent" so they do not look for a S-Corp return or Partnership return as they don't qualify for either anymore.  But I have to believe there is a better way to do this.  Additionally, I had to create, a sort of bogus partnership returns in order to produce the necessary state forms for the disregarded entities.

Any help would be greatly appreciated.

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