Is a Form 1065 required if the newly formed LLC made $0 income or expenses?

[g-rick1]

This LLC was created in 2016 and the only cost associated was the amount to purchase the LLC.  My spouse is the MGR and I am the AMBR.  We never did anything with this LLC.  We were expecting some work via the LLC, but nothing happened.

[AmyT · Accepted solution]

You will need to file a return for the LLC this year.  When you get a taxpayer identification number (TIN or EIN), the IRS adds the business to their system and will look for a tax return to be filed for that EIN.  If one is not filed, you may be subject to notices and failure to file penalties.

A multi-member LLC files Form 1065 (Partnership return).

• Note:  There is an election available for a LLC to be treated, for tax purposes only, as a C corporation or a subchapter-S corporation.
  

You are only allowed to deduct expenses in the year that you paid them.

You should report the 2016 expenses on the LLC's income tax return even if you do not have income.  The expenses you incurred should be deductible on your personal income tax return and will reduce your income for 2016.