Consolidated Financials ? Single Member LLC

Existing S corp bought the assets of similar company about 50 miles away. Purchase and Sale agreement was between Existing S Corp and the the selling corp. No issues there.

But existing S Corp wanted to track operations of new region so he set up a Single Member LLC owned 100% by S Corp. This will be disregarded for tax purposes but what about financials. The new LLC has no fixed assets (as they were bought by S Corp) but did open a checking in the LLC name. Does this mean we will be forced to do consolidated financials even if the total transactions by new LLC is nearly immaterial?

It depends if you're looking for a tax or a GAAP answer.

In the past, when I've had this, I've only cared about it from a tax standpoint. What I did is to have an asset Investment account to handle the SMLLC under the equity method, and I set up one account to handle the SMLLC's profits on the parent's P&L, nothing more.

I only did a consolidation (eliminations) worksheet for the tax return.