Is there a way that a sole proprietorship can file as DBA on a 1120S?
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A client has been operating under a sole proprietorship. But owns an inactive SCorp. Is there a way that a sole proprietorship can file as DBA on a 1120S?
Answer
No, I do not believe so. If the business is run under the S-Corp then the S Corp needs to file a return.
Answer
Not wanting to practice law without a license but I believe a corporation can acquire any business for "consideration" (ie compensation). Once that has been taken care of it would be a legally owned subsidiary of the corporation. I have a client that has an "acquired" DBA business nested inside of a corporation. You would have to make sure on the tax return on the Schedule C that you note the business has been sold and include that information on the 4797.
Please mark this question as solved. Thank you.
