Income Reporting and Projection - LLC - S Corp

I am a bit confused in this situation and try to sort it out.

1. The Individual Client C is 100% shareholder of an S Corp "A".

2. S Corp "A" is a 50% member of B, LLC and actively participates in all affairs of B, LLC.

3. B, LLC started in Jan 2023.

4. B, LLC runs the business providing consulting services and receive income of $100. No expenses incurred.

5. B, LLC transferred $20 to S Corp A in Feb 2023.

So the $50 is the income to S Corp "A"
$20 is just the partial distribution.
Am I correct?

I do not do the books of B, LLC. I am in the middle of preparing a sale tax returns fro S Corp "A" and need to report total sales and services. So I should report $50 in this case assuming that S Corp "A" has no other income.

For tax projection in the future, I should not based on the disbution received ($20). Instead I should ask B, LLC's CPA for a projected K-1. Am I correct?

So the $50 is the income to S Corp "A"
$20 is just the partial distribution.
Am I correct?

Yes

preparing a sale tax returns... So I should report $50 in this case assuming that S Corp "A" has no other income.

That doesn't sound right. Is that $50 of flow-through income a taxable sale in your state?

For tax projection in the future, I should not based on the disbution received ($20). Instead I should ask B, LLC's CPA for a projected K-1. Am I correct?

Yes

Service income is not taxable in my state.

Your state requires a business to file sales tax returns if no sales are subject to sales tax?

We have been filing sales tax returns because of taxable sales arose in the past. But this time with the new formed LLC, I felt a bit out of control because the LLC was done by another CPA.

I also felt that it is difficult to tie in the numbers because the LLC may not have done their bookkeeping works. Asking for the income from the LLC is like pulling teeth.

Without the LLC, the gross sales is the service income plus taxable sales. With the LLC, how should I account for the service income from the LLC. The service income is in fact the net profit because the net income would become the income from LLC. So at this point, I may only report the income from LLC as an estimated number. It is because the number may change when they close their books. Am I correct? How would you handle this?

If the client wants to keep the sales tax account open and keep paying you to file zero returns, call your state DOR, explain the situation, and ask what they want to see. I wouldn't be surprised if they said subsidiary sales should not be included on A's sales tax return, which would make filing sales tax returns for A very easy.

The S Corp sells merchandize and is required to file sales tax returns. I have called the state for clarification.

The service "income" from LLC should not be included because the job was billed by the LLC to the LLC client directly. S Corp is just the shareholders who receive the net profit. LLC may need to file sales tax filing if the service income is taxable.

S corp is not liable to pay sales tax for those income because S Corp does not bill out the service to the clients.