Legal Question in Tax Law in California

Federal and State tax payer identification number

Company A is a full C corporation and was started in 1995. Company B is a full C corporation and was started in 2005. Company B is a wholly owned subsidiary of company A.

Both companies operate in California, out of the same building, at the same address and have the same owners and corporate officers.

Is company B REQUIRED to have a separate tax payer ID number, or since it is a (wholly owned) subsidiary can both companies file a single tax return under company A's existing tax payer ID number.


Asked on 5/22/06, 2:18 pm

3 Answers from Attorneys
Donald Field Donald L. Field, Jr., Attorney at Law

Re: Federal and State tax payer identification number

a separate tax id is required, but a consolidated return may be possible. see:

http://www.irs.gov/instructions/i1120_a/ch02.html

http://www.irs.gov/pub/irs-pdf/f1122.pdf

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Answered on 5/23/06, 1:02 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Federal and State tax payer identification number

Any legal entity must have its own tax ID number and file their own tax return, whether or not it is a subsidiary.

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Answered on 5/22/06, 2:37 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Federal and State tax payer identification number

They are two separate entities and each must have a separate tax ID number.

A corporation is a legal entity that exists separate and apart from the shareholders. A corporation has rights and can even commit crimes. The status as a subsidiary corporation makes no difference.

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Answered on 5/22/06, 4:26 pm


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