Holding and operating LLC taxes

[Wilson Pereira]

I have a holding LLC setup as a partnership and an operating LLC who's primary member is the holding LLC. For federal tax purposes the operating LLC is a disregarded entity. Do I still need to file state taxes on the disregarded entity? I want to make sure I have this setup right to avoid double taxation. I understand the operating LLC net profit/loss will flow up to the holding LLC and through to my 1040 when I file my tax returns.

[Ashish Acharya]

Originally posted by @Wilson Pereira:

I have a holding LLC setup as a partnership and an operating LLC who's primary member is the holding LLC. For federal tax purposes the operating LLC is a disregarded entity. Do I still need to file state taxes on the disregarded entity? I want to make sure I have this setup right to avoid double taxation. I understand the operating LLC net profit/loss will flow up to the holding LLC and through to my 1040 when I file my tax returns.

Generally SMLLC will not file tax returns, but some state requires a returns from SMLLC. Such as TN. 

Check your state requirements.