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Familiarize yourself with the tax implications for subsidiaries to set up your small business for maximum profitability.

Your small business LLC can form subsidiaries that also have LLC status.

Finally, the tax is determined on the amount of consolidated income, and reduced by consolidated tax credits. Exceptions to SRLY Status (1) Separate Return Year of Common Parent (2) Member of Group Each Day of Year C. Illustration of Operation of Net Operating Loss Carryover and Carryback Rules in SRLY Context a.

To view this Portfolio, take a free trial to Bloomberg BNA Tax & Accounting BLOOMBERG BNA TAX & ACCOUNTING This Portfolio is available with a subscription to Bloomberg BNA Tax & Accounting, a comprehensive research solution including over 500 Tax Management Portfolios, practice tools, primary sources and timely news. Separate Return Year; Separate Return Limitation Year a. Net Operating Loss Carryovers and Carrybacks from SRLYs to Consolidated Return Years 1.

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Cessation as Member of Loss Subgroup (1) In General (2) Special Rules 4. Tax Management Portfolio, Consolidated Returns — Limitations on Losses, No.