I have a C Corporation client with a single member LLC operating as a subsidiary. We are working to change their ERP systems and we are considering whether we can consolidate the balance sheets of the companies and just run separate p&l's. The company will likely keep separate inventory and a/r records.
For tax it is consolidated, so it doesn't really matter. Anyone think this will create a legal issue? I am also facing this questions for a client with multiple QSUB's owned by a single S Corporation.