In 2020 we formed a 2 member LLC for the purpose of purchasing a house. The house is in the name of the LLC which has no other income/expenses. What do we need to file?

[Anonymous_]

Who is "we"? Where do you live? For what purpose did you purchase the house (e.g., rental, residence. vacation home)?

If you formed an LLC with someone other than your spouse or with your spouse but you reside in a common law state (rather than a community property state), then you might need to file a Form 1065, at least at a point where the LLC has income or expenses.

[jemayres1]

We is my husband and I.  We live in New York state.  The house is our primary residence.  The purpose of the LLC was to keep our name out of the newspaper, so we likely will dissolve it this year.

[Opus 17 · Accepted solution]

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@jemayres1 wrote:

We is my husband and I.  We live in New York state.  The house is our primary residence.  The purpose of the LLC was to keep our name out of the newspaper, so we likely will dissolve it this year.

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Most LLCs are partnerships under federal tax law and must file a form 1065 partnership return (unless the only two members are spouses AND you live in a community property state, which NY is not.).   Some LLCs may be corporations or may file a form to be taxed as a corporation even if they are a partnership.  Corporations file form 1120.

The 1065 is prepared using Turbotax Business version. This is a separate program that is only available as a CD or download to install on a PC, there is no Mac or online version, and it is not the same as "home & business."  When you file the 1065, each partner will receive a K-1 statement showing income and expenses of the partnership and they enter the K-1 on their personal tax return. The deadline for filing the 1065 is March 15, not April 15, and the penalty for late filing is $195 per month per partner.

If you have no income or expenses and your LLC is a partnership, you may not be required to file form 1065.  If you are a corporation, you must file the 1120 even if you have no income or expenses. 

https://www.irs.gov/businesses/small-businesses-self-employed/llc-filing-as-a-corporation-or-partner...

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

https://www.irs.gov/instructions/i1065#idm140672607577504

[Anonymous_ · Accepted solution]

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@jemayres1 wrote:

We is my husband and I.  We live in New York state.  The house is our primary residence.  The purpose of the LLC was to keep our name out of the newspaper, so we likely will dissolve it this year.

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Then if the LLC has neither income nor expenses, an income tax return (Form 1065) is not required to be filed.

[jemayres1]

Thank you for your help.  Very informative.