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New Member
posted Jun 1, 2019 8:47:44 PM

Do I need to file business taxes if I didn't make any money with the business? Do I file it with my regular Joint filing or separate?

I am currently using TurboTax Premier 2018.  I'm filing jointly, nothing too unique.  However, my wife and I opened an LLC in 2018 with the intent to start a business.  We did get the EIN with the IRS (think it was mandatory) and we got a form SS-4.  We did NOT actually start the business and did not make any money, and we have not intention to write off any of the expenses from establishing the business entity (like $500 or something). Do we still have to file with the IRS? If so do we do it with our normal Joint return or do we do a separate filing? If we do it with our normal return how? We'd rather just skip it all together if it's not necessary. 

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1 Best answer
Level 15
Jun 1, 2019 8:47:45 PM

"Do I file it with my regular Joint filing or separate?"

 

Multi-member LLCs file an income tax return on Form 1065. However, a Form 1065 does not need to be filed if the LLC neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

See https://www.irs.gov/instructions/i1065#idm140538038032800

 

Note that if you and your wife are the only members of the LLC in a community property state (and did not elect corporation tax status, and you would be aware of that if you did), then you can treat the LLC as a "qualified entity". 

 

In that event, the LLC is disregarded for federal income tax purposes and you can each report income and expenses of the LLC on Schedules C on your 1040.

 

See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf

3 Replies
Level 15
Jun 1, 2019 8:47:45 PM

"Do I file it with my regular Joint filing or separate?"

 

Multi-member LLCs file an income tax return on Form 1065. However, a Form 1065 does not need to be filed if the LLC neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

See https://www.irs.gov/instructions/i1065#idm140538038032800

 

Note that if you and your wife are the only members of the LLC in a community property state (and did not elect corporation tax status, and you would be aware of that if you did), then you can treat the LLC as a "qualified entity". 

 

In that event, the LLC is disregarded for federal income tax purposes and you can each report income and expenses of the LLC on Schedules C on your 1040.

 

See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf

New Member
Jun 1, 2019 8:47:46 PM

Thank you tagteam

Level 15
Jun 1, 2019 8:47:47 PM

You are most welcome.