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Level 1
posted May 17, 2020 11:30:18 AM

I created a single member LLC with no activity in 2018. How can I add the LLC expenses of 2018 to this year tax return?

I created a single member LLC in 2018 with no activity for that year. 

I did not file the LLC in 2019 form. How can I deduct the cost of creating the LLC in 2018 in this year tax form?

 

Thanks 

0 3 525
3 Replies
Level 15
May 17, 2020 12:54:52 PM

In TurboTax (the Business tab), you need to indicate that you "started or acquired" the business in the current year in order for "Startup Costs" to be displayed in the Business Expenses section.

Level 1
May 17, 2020 7:50:18 PM

How is started defined?   I have filed for an LLC but it is not active yet.  I don't plan to start under that business form until later this year.  As such I would consider my start date as the date the LLC goes active not the date of filing with the state.  There is no one act in the creation of a business that can  be identified as a start date.   I have never started a business until everything is lined up, then I choose a START date.  If the IRS wanted a creation date rather than a start date, that would be different. 

Level 15
May 17, 2020 9:37:54 PM

@MNMH wrote:

....I would consider my start date as the date the LLC goes active not the date of filing with the state. 

That would be correct for federal income tax purposes.