Multi member LLC without income or expenses

Forum|Forum|7 years ago
June 6, 2019
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My siblings and I established a multi member LLC in 2016 that has no income nor expenses. The LLC was only set up to manage a family vacation home that is not a rental.

1. Is the LLC required to file a federal tax return?

2. If the LLC begins to earn interest in our bank account, would be be required to file a federal tax return?

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Best answer by levisncap89

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klmedlinAuthor

Level 2

Yes, the LLC account would earn interest and the interest would remain in the LLC account.

klmedlinAuthor

Level 2

Either a DDA or savings account at a bank.

levisncap89

Level 5

Officially, I have to tell you that any interest income, even a penny, has to be reported as taxable income. CPA boards are funny about things like that.

Realistically, DDA's pay de minimus interest rates and it's doubtful you'd receive a 1099-INT unless the cumulative balance is quite substantial. If you don't receive one, then the interest wasn't reported to IRS as income at the entity level and whether or not you report it becomes a personal decision on your part.