It depends how the LLC was structured.
Single member LLC - (or husband/wife LLC in a community property taxes and you elect disregarded entity) is considered a disregarded entity for US federal income tax purposes. You will include the income and expenses on a Schedule C attached to your personal income tax return.
If LLC treated as disregarded entity then you have a Schedule C filing (or if a rental LLC, Schedule E filing) that is attached to your personal income tax return. You would be able to enter the LLC expenses regardless of if you have LLC income.
Once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here , then select "Take Me to My Return"), type "Schedule C" in the search bar then select "jump to Schedule C".
Multi member LLC - is considered a separate entity and will need to be reported on a separate federal income tax return (you will need TurboTax Business, you can purchase a downloadable copy here ) If reported as a partnership (Form 1065), you will need to include your K-1 from this partnership with your individual US federal income tax return.
If LLC treated as a separate entity, then you will have a business return filing (1065, 1120, 1120S) and will need to use TurboTax Business to filing this LLC business information. You would receive a K-1 and you report your K-1 information on your tax return.
After you receive your K-1, once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here , then select "Take Me to My Return"), type "K-1" in the search bar then select "jump to K-1".
For more information see Single Member Limited Liability Companies
For the amount of start-up costs before you started your business -
You may elect to deduct up to $5,000 of start-up costs in the year your business begins operations. The $5,000 first-year deduction limit is reduced by the amount of start-up costs exceeding $50,000. (If reported on Schedule C, you would include this as under business income and expenses - "Other Common Business Expenses"> "Other Miscellaneous Expenses" and enter here (as start-up costs).
Start-up costs that exceed the first-year limit of $5,000 may be amortized ratably over 15 years. The amortization period starts with the month you begin operating your active trade or business. (Include any remaining start-up cost under the asset section of business income and expenses.)
Start-up costs include amounts paid for the following:
- An analysis or survey of potential markets, products, labor supply, transportation facilities, etc.
- Advertisements for the opening of the business.
- Salaries and wages for employees who are being trained and their instructors.
- Travel and other necessary costs for securing prospective distributors, suppliers, or customers.
- Salaries and fees for executives and consultants, or for similar professional services.
For example, you began business operations July 1, 2016, had start-up costs of $35,000.
You may deduct $6,000 in 2016 (First-year limit, $5,000, plus First year's amortization, $1,000).
A full year's amortization would be $2,000 ($35,000 minus $5,000 divided by 15). Since the amortization period began July 1, 2015 (the month business operations began), the first year's amortization is one half of $2,000 or $1,000.
For the amount of business expenses after you started your business -
You will be able to expense any eligible business costs incurred after you started your business.
Please refer to this IRS link for more information about Business Expenses
