LLC Expense -No Income

[CaBrandy]

I have two LLC's with EIN's.  I have no income but less than $1000 in expenses for 2019.  I have been waiting to close on a business so do I need to file a K-1 for each LLC?  

[RobertG]

Yes, you should file returns and issue K-1s.

Assuming you have been filing partnership or S-Corporation returns for each LLC, you should file a final return in the year the business ceased to operate.  That way you can report the remaining expenses and officially close the business.

Filing a return starts the running of the Statute of Limitations and limits the time that the IRS can begin an audit.

[Rick19744]

Actually we need some additional facts / clarification:

• The LLC's.  Are these single member LLC's or multi-member LLC's?
• What does "waiting to close on a business" mean?

[Anonymous]

has the LLC elected to be taxed as an S-Corporation?

[CaBrandy]

Yes, one LLC has S-Corporation status, which is the operating company.  The other LLC is sole member status for holding business assets rented to the S-Corporate LLC. 

[CaBrandy]

Both LLC's are single member status.  The LLC were established for the purchase of a restaurant which was still in process to close at year end.

[Rick19744]

Just for final clarification.

• One single member LLC has elected to be taxed as an S corporation
• What is the status of the other single member LLC?
  • Who owns this single member LLC? 
  • Is this owned by an individual
  • Or is it owned by the S corporation?