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aaliyahdeggs
New Member

I started a Limited Liability Company in September 2019. I am the only employee. I generated $0 in income but have expenses. Do I add my LLC to my personal taxes?

 
2 Replies
Carl
Level 15

I started a Limited Liability Company in September 2019. I am the only employee. I generated $0 in income but have expenses. Do I add my LLC to my personal taxes?

The owner of a single member LLC or multi-member LLC can not be an employee of the business they own. Period. Under no circumstances will you issue yourself a W-2, 1099-MISC or any other type of tax reporting document. There are no exceptions.

If a single member LLC all business income/expenses are reported on SCH C as a physical part of your personal 1040 tax return.

If a multi-member LLC all business income/expenses are reported on a 1065-Partnership return.

If the business was "open for business" for even one single day of the tax year, you are required to report it to the IRS. Income and expenses are *not* a requirement. Being "open for business" requires you to report it.

 

Hal_Al
Level 15

I started a Limited Liability Company in September 2019. I am the only employee. I generated $0 in income but have expenses. Do I add my LLC to my personal taxes?

 Yes, you add this activity to your personal tax return. A single member LLC is a "pass thru entity" for tax purposes.  You report your income and expenses on Schedule C. 

 

If you were "open for business", then you may deduct the expenses on Sch C, even though you have no income.  Otherwise, those expense are "start up costs" and amortized (deducted) over a 15 year period

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