Take a step back, why would a C corp. own an LLC? Unless you have a large business with different operating divisions, this structure does not seem ideal.
To answer your question, regardless of whether the LLC sub is disregarded or elects C corp taxation of its own, it is taxed the same. The two entities share one set of c corp tax brackets. As a follow to Bridge's question, we might be better able to help if we know what your goal is. if you don't want to post all of that, feel free to drop me a line at the email in my profile.
I'm trying to figure this out but am having a tough time finding information.
A C-corp creates a subsidiary LLC. My understanding is that all profit from the LLC simply passes through to the C-corp and the c-corp pays taxes on the profit. I understand that typically any profit is subject to income tax, regardless of is the profit was distributed partially or in it's entirety. Would this be the same with the C-corp in that the C-corp would simply pay income taxes on all the profit, even if some of the money stayed in the LLC as retained earnings? And is the income tax rate based on if the LLC by itself was profitable or the C-corp? Where even if the LLC made money, the C-corp, even with the distribution from the LLC, did not. So does the C-corp still pay income taxes on the LLC's earnings?
Sorry if this was the most coherently written question but hopefully you all will understand it. Thanks!