We have a client that formed an LLC that will make a Qsub election to have an existing S corp as its Q sub. The bank has asked us to prepare a balance sheet for the LLC on day 1 of its operations. Would that balance sheet include the S corp balance sheet as all of this will be presented on one tax return eventually? Or for book purposes, do you prepare two separate and distinct sets of books and only merge them for tax return purposes?
We have never dealt with a Qsub situation. Thank you for your help!