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posted Jun 1, 2019 1:25:48 PM

I opened an LLC company (sole member) in 2018. I didnt have any income nor expenses in 2018. How do I incorporate the LLC information in my tax return?

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1 Best answer
Expert Alumni
Jun 1, 2019 1:25:49 PM

As a single member LLC, you can report your income and expenses on Schedule C of your return.  

You may have incurred start-up expenses even though you were not actively engaged in business during 2018. You can elect to deduct up to $5,000 of start-up costs in the year in which the active trade or business begins. Any remaining costs must be amortized. 

If you started your business in 2018 but it begins to become active only in 2019, you can deduct up to $5,000 of start-up costs in 2019.

You can also elect not to deduct those start-costs and amortize them.  Start-up costs are amortized over a period of 180 months (15 years).

Please read this IRS document for more information:

https://www.irs.gov/publications/p535/ch07.html 

1 Replies
Expert Alumni
Jun 1, 2019 1:25:49 PM

As a single member LLC, you can report your income and expenses on Schedule C of your return.  

You may have incurred start-up expenses even though you were not actively engaged in business during 2018. You can elect to deduct up to $5,000 of start-up costs in the year in which the active trade or business begins. Any remaining costs must be amortized. 

If you started your business in 2018 but it begins to become active only in 2019, you can deduct up to $5,000 of start-up costs in 2019.

You can also elect not to deduct those start-costs and amortize them.  Start-up costs are amortized over a period of 180 months (15 years).

Please read this IRS document for more information:

https://www.irs.gov/publications/p535/ch07.html